Airline shares underperform by 13% as oil prices surge; pace of profit growth slow in 4Q
IATA, in its Feb/Mar-2011 Airlines Finance Monitor, stated airline share prices have lost 10% so far this year, as financial markets worry about exposure to rising oil costs. This compares with a 3% gain in equity markets over the same period, meaning airline shares are underperforming the market by around 13%. This follows a strong outperformance by airline stocks during 2010, when the global airlines index rose 28%.
