Airlines share prices rallied at year-end, but remain 30% down on the start of 2011. Financial markets continue to expect further downward pressure on airline profits.
The International Air Transport Association (IATA) reported that full year 2011 passenger demand rose 5.9% compared to 2010, in line with long-term growth trends. In contrast, cargo markets contracted by 0.7% for the year; but recorded positive demand growth in December of 0.2%.
