BAKU, Azerbaijan, July 1
By Sadraddin Aghjayev - Trend:
Global airlines suffered losses of over $17.8 million in the first quarter of 2021, Trend reports citing the International Air Transport Association (IATA).
The further state of the world's aviation revenues will depend on the size of the domestic market and the rate of vaccination, said the association.
The association noted that high prices for jet fuel and the lack of recovery in international traffic according to the latest data (in June 2021) negatively affected the prices of airlines' shares.
“Overall, global prices for airlines’ shares remain well below pre-pandemic levels. In the first 5 months of 2021, airlines’ shares declined by an average of 4.4 percent. North American Airlines posted the worst performance (down 7.9 percent) despite an increase in domestic tourist travel close to pre-pandemic levels. Similarly, European airlines’ shares have dropped in value, although there is some hope for an increase in summer travel to Europe as vaccinations gain momentum. The sharp rise in jet fuel prices in the absence of a recovery in international and business travel has affected the performance of both European and North American airlines. On the other hand, the index of airlines in the Asia-Pacific region remains stable with the mixed performance of regional airlines,” the IATA said.
Moreover, the IATA, citing the International Energy Agency, stated that global oil demand will increase by 6 percent in 2021 and by the end of 2022 a return to pre-pandemic levels is possible.
“Demand in transport fuel is expected to rise as the holiday season supports travel demand. On the supply side, global oil supplies continued to rise amid increased supplies from non-OPEC + countries and monthly OPEC + production cuts,” the IATA said.
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