International Air Transport Association (IATA，hereinafter referred to as“IATA”) releases the latest financial data survey report，The third quarter of 2021 compared with the second quarter，Airline operating pressure has eased，As markets reopen，Passenger traffic on some domestic and international short-haul routes has begun to recover。

As investors worry about the impact of rising aviation fuel prices on airline operating costs。October，Global airline stock prices fell，The largest decline in North America，Down 7% from September.2%。Due to the outbreak and the uncertainty about the recovery of air travel，Global airline stock prices have been in a state of sideways adjustment for most of 2021，Well below pre-COVID-19 levels。Year to date，Global airline stock prices only increased by 1.8%。Among them，Best performing airlines in Asia Pacific，YTD growth 188bet Online Sports Betting and Casino 6.5%，European airlines’ share prices were the weakest，Down nearly 7% year to date。

As global economic activities restart，Tight fuel supply，Aviation fuel prices continue to trend upward。As of early November，Aviation fuel prices have increased by 70% compared with the beginning of the year。

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IATA’s preliminary survey results for the third quarter of 2021 show，Compared to Q2 2021，Overall airline financial losses decreased，Some airlines achieve first profitable quarter since COVID-19 crisis。Of the 27 airlines participating in the survey，The industry-wide EBIT margin in the third quarter was -2%。

The third quarter is the traditional peak season，Travel restrictions have been lifted on some domestic and international short-haul routes，Passenger transport shows signs of recovery。North American Airlines is one of the best performing airlines，Although it was also affected by the new coronavirus epidemic from August to September，But still benefiting from the increase in passenger traffic in the US domestic market，American Airlines profits also boosted by government payroll support program。European airlines recover strongly，Benefiting from growth in intra-European passenger traffic。

However，Significant increases in aviation fuel prices have put upward pressure on airline operating costs，188bet sports betting app download And poses risks to the profitability and further recovery of the airline industry in the fourth quarter。Another challenge comes from rising infrastructure costs and staff shortages (US)。

Revenue continues to decline faster than costs

Preliminary financial investigation results show，Passenger revenue in the third quarter of 2021 fell 34% compared to the same period before the crisis (Q3 2019)，In the same period, freight revenue was driven by strong demand，Growth 65%。Airline total revenue dropped by about 30%，This is a great improvement from the 46% decrease in the second quarter。

The operating costs of participating airlines fell by 18% (compared to the third quarter of 2019)，Less than revenue decline，Rising fuel prices add pressure on fuel costs (compared to a 45% decline in Q2 2021，Down 27% in the third quarter of 2021)。However，With the recovery of passenger traffic，Other variable costs are also rising rapidly，All partners in the air transport supply chain need to manage costs carefully in a still weak revenue environment。

Compared to the same period in 2020，Cash flow improved in the third quarter of 2021

Based on financial survey of some airlines，Due to the reopening of some international markets、Increase in domestic passenger traffic and growth in freight revenue，Cash flow in the third quarter of 2021 improved compared to the third quarter of 2020。

The third quarter is often the slow season for operating cash flow，188bet Online Sports Betting and Casino Because tickets for northern hemisphere summer travel have been sold in the second quarter。Therefore，Compared to Q2，Survey shows that the operations and free cash flow of some airlines have turned negative again。The new round of epidemic has also caused a decrease in bookings in major markets。

Jet fuel prices up 70% since the beginning of the year

Last weeks，Jet fuel prices and average Brent crude oil prices continue to climb，Currently well above pre-crisis levels in 2019。Early November，The price per barrel of jet fuel is 96.$1，Up 70% year to date。

As global markets reopen and economic activities restart，Demand recovers quickly，Driving the price increase。Meanwhile，Due to slow growth in OPEC+ oil production，Supply remains tight。

Many airlines have been concerned about the impact of rising fuel costs - an airline's largest operating cost expense - on their financial recovery。Airline passenger revenue is seasonally weak in the fourth quarter，Hence rising fuel prices are an unwelcome challenge。