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25-Apr-2014 9:13 AM

AIRLINE BUSINESS CON FIDENCE INDEX APRIL 2014 SURVEY

Direct News Source

24-Apr-2014 Airline profit expectations remain strong and broadly in line with levels seen over the past year, according to IATA's quarterly survey of airline CFOs and heads of cargo in April;

  • There is confidence that air transport volumes will continue to expand over the next 12 months, supporting an improved outlook for (passenger) yields. In addition, input costs are expected to decline.
  • A majority (76%) of respondents expect passenger travel to expand over the year ahead, at a faster pace than in the January survey;
  • Cargo volumes are also expected to grow during the year ahead - which is consistent with recent improvements in world trade growth and increases in business confidence - but at a slower rate than passenger demand;
  • Input costs are reported to have declined during Q1, mostly as a result of cost cutting measures, and respondents expect the trend to continue over the next 12 months;
  • 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;
  • By contrast, cargo yields are expected to decline slightly, despite a view toward stronger volume growth ahead;
  • 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.

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