The International Air Transport Association (Iata) on Friday revealed that airlines’ share prices had dropped 3% in February, while crude oil prices had rebounded from January lows.

According to the association’s Financial Monitor report for February, airlines’ shares had increased by 40% in 2014, partly owing to low energy prices in the latter months of the year.

The weakening airline share prices, which occurred in all regions, were likely a result of the recent rally in crude oil and jet fuel prices, Iata noted.

Crude oil prices had rebounded to $60/bl after having dropped by more than 50% by the end of last year. The recent increase in oil prices was attributed to changes in the supply and demand conditions.

The slight rebound in fuel prices had reduced investor optimism about the outlook for airlines’ financial performance, stated Iata.

Meanwhile, financial results from the fourth quarter revealed that airlines’ financial performance continued to improve.

A sample of 45 airlines showed that the industry’s financial performance had improved significantly on the year-ago period at the operating level.

The increase was attributed to consolidation and cost-cutting by North American airlines, which significantly boosted profitability.

Asia-Pacific airlines were starting to show signs of improvement on a year ago, which reflected a combination of stronger demand and efficiency gains by some carriers, Iata pointed out.

Meanwhile, air transport volumes contracted slightly in January, compared with December but within normal month-to-month volatility. The report noted that the demand backdrop continued to show signs of downside risks, including easing business confidence and falling export orders.

Passenger and freight loads dropped in January, compared with December 2014 and this reflected the fall in volumes and continued growth in international market capacity.