Airline profit expectations remain strong: IATA

IATA, in its Airline Business Confidence Index quarterly survey of airline chief financial officers (CFOs) and heads of cargo in Apr-2014, stated airline profit expectations remain strong and broadly in line with levels seen over the past year. Respondents expressed confidence that air transport volumes will continue to expand over the next 12 months, supporting an improved outlook for passenger yields. IATA noted, "Seventy-six per cent of respondents, or the majority, expect passenger travel to expand over the year ahead, at a faster pace than in the January survey... Passenger yields are expected to increase slightly over the year ahead, improving on the January survey as the outlook for air travel growth picks up". On input costs, it said respondents expect the declining trend to continue over the next 12 months. The input costs are reported to have declined during the first quarter of the year, mostly as a result of cost cutting measures, it added. IATA also noted that "cargo yields are expected to decline slightly, despite a view toward stronger volume growth ahead" and that "airline employment activity is reported to have been broadly stable during Q1 compared to a year ago, but a rise is expected in the year ahead, consistent with the positive profits outlook respondents are indicating". [more - original PR]