The International Air Transport Association, IATA has released the Airlines Financial Monitor showing initial financial results from Q2 2016 points to another solid quarter for industry profitability and cash flow.
The Global airline share prices increased by 5.9percent in July, but remained well down on where they started the year.
Brent crude oil prices fell back sharply in July, driven largely by a near-term glut in supply.
The futures curve has shifted down in recent weeks, with oil prices now expected to remain below $55/bbl for the foreseeable future.
Yields have fallen by around 6.5percent year-on-year in constant exchange rate terms in 2016.
Ongoing downward pressure on yields is expected to provide further stimulus to demand during the rest of the year.
The premium segment continues to offer an important buffer for overall airline financial performance.
Premium airfares have held up better than their economy counterparts on many of the main premium routes so far this year.
The global air passenger market grew solidly in annual terms during H1 2016. That said, the upward trend has eased in recent months on the back of modest economic growth and cumulative impacts of terrorist attacks.
The latest freight volumes data point to an improvement from the weak conditions seen earlier in 2016.
But familiar headwinds persist, and low freight loads are keeping downward pressure on cargo yields and revenues.
