STRONG signs are pointing to a recovering airline industry helped largely by lower crude oil prices. However, at the same time, airline yields are also dropping due to rising competition, which is a cause for concern.
Yields, which are a measure of revenue multiplied by revenue per kilometre (RPK), has been on a downtrend since the fourth quarter of 2014, according to Maybank Kim Eng. Revenue per average seat kilometres (RASK), often described as the sweet spot to profitability for any airline, has also been on a similar downtrend over that time period.