Outlook for aviation industry improving, says report

The outlook for the aviation industry may be looking up, despite ongoing problems faced by a number of high-profile carriers including British Airways. Aviation association Iata recently revealed that the industry suffered its worst decline since the war in 2009, but a new report says that early figures from a number of its members suggested load factors and pricing were recovering in the final quarter of the year. Iata's Airlines Financial Monitor for December and January noted that airline share prices had gained 5% in January, as markets became more positive about airline performance. The report also said the passenger and freight load factors had returned to pre-recession levels, supported by capacity cuts imposed earlier in the year. However, optimism over a rise in fares was tempered by a continued lag in premium revenues, which are key drivers of airlines performance and remain 30% down on early 2008.