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IATA: Business confidence continues to improve, profitability to improve in 2013

25-Jan-2013 12:11 PM

IATA, in its Airline Business Confidence Index for Jan-2013, stated (Jan-2013) airline business confidence, which bottomed out at the start of 2012, has been improving with further increases over the past three months while 56% of respondents expect an improvement in profitability over the next 12 months. Passenger yields are reported to have improved over the past 3 months and increase is also expected in 2013. By contrast cargo yields declined in 4Q2012 and are expected to remain unchanged over the next 12 months. Details include:

  • Profitability: 56% of respondents expect an improvement in profitability over the next 12 months;
  • Demand growth: Passenger traffic improved during 4Q2012 and expectations for growth over the next 12 months improved. 71.4% of respondents now expect improved demand growth in 2013, compared to 52.9% in Oct-2012. Strong growth in cargo volume were reported in 4Q2012. Looking ahead, respondents expect to see further increases in air cargo in 2013, consistent with expectations of improved world trade growth;
  • Costs: Looking ahead, expectations for the next 12 months are for no change in the current input cost levels;
  • Yield: For the year ahead, passenger yields are expected to improve, but there has been little change in January compared to the October survey. By contrast, expectations for cargo yields are for no change over the next 12 months. This outlook could be influenced by the expectation that there will be no change in input costs in the year ahead. [more - original PR]