IATA releases its latest business confidence survey of airlines CFOs and heads of cargo
Airline profit expectations for the year ahead have become more positive, consistent with improvements in recent performance, according to IATA’s quarterly survey of airline CFOs and heads of cargo in January.
Financial performance started to improve in H2, after no gains in Q2, and the outlook remains positive which suggests there will be further growth in profitability.
The survey indicates that falling input costs and growth in volumes are responsible for better recent financial performance as well as the positive outlook.
Respondents reported seeing a decline in input costs in Q4, largely due to a fall in crude oil prices over recent months, and expect the trend to continue during the year ahead.
Both passenger and cargo volumes were reported to have expanded during Q4, which is consistent with latest air traffic statistics.
There is also confidence that air transport volumes will continue to expand over the next 12 months, despite rising concerns about the health of the global economy.
Respondents continue to report declines in yields in both business, for the recent past and the coming year, potentially reflecting the expected decline in fuel-related costs.
Airline employment activity is reported to have been stable in Q4 compared to a year ago, and no growth is expected for the year ahead.