The International Air Transport Association (IATA) reported that Asia Pacific airlines were the weakest performers in its sample of airline financial results in the first quarter of 2021, with net losses up 57% compared to the fourth quarter of 2020.

It said the findings were based on a sample of 26 carriers.

IATA noted that the result in the Asia Pacific region was due to new COVID-19 outbreaks and muted international travel in the region.

Meanwhile, it said that the global varies per region. IATA said North American airlines showed the most significant reduction in net losses as the willingness to travel started to recover in the US in March amidst vaccine progress.

"Q1 2021 results show that the start of the year was still very weak for the airline industry as virus outbreaks paused air travel recovery in many important markets," IATA said. 

However, it noted that initial second-quarter results indicate a "significant improvement" in North American airlines’ financials on the back of the US domestic rebound and also some positive developments in international and business travel.

IATA noted that despite the positive news coming from North America, there is a "reason for caution."

"Global number of COVID cases has been trending upwards, which caused concerns amongst investors about the future of air travel recovery," IATA said, noting that as a result, airline share prices ticked down in July across.

Meanwhile, it said oil and jet fuel prices continue to trend upwards amidst wider economic recovery and supply constraints.