Profits in 1Q were “significantly down” on last year due to high fuel prices early in 2012, although North American airlines “stood out with improved performance”. IATA described market conditions in 2Q as “supportive” for airline profits, particularly the drop in fuel prices by $30/bbl in June since the peak in 1Q. While airline fares have fallen two per cent this year worldwide, the US is again the exception, with carriers maintaining high yields and strong load factors. IATA says that air travel continued to expand in 2Q, though there was some “softness” in May traffic. Seasonally adjusted air freight levels remain above the lows at the end of 2011.