23-Jul-2015 4:52 AM
IATA Airline Business Confidence Survey - July
Direct News Source
Jul-2015 We are pleased to send you herewith our latest business confidence survey of airlines CFOs and heads of cargo.
- Airline profit expectations for the year ahead have dipped from previous highs but remain positive, according to IATA’s quarterly survey of airline CFOs and heads of cargo in July;
- The rate of expected improvement in profitability over the next 12 months has fallen in July compared to the April survey, suggesting that improvements in key drivers might have peaked earlier in the year;
- Recent gains in profitability have been driven by strong growth in traffic volumes and falling input costs;
- Respondents reported seeing a decline in input costs in Q2 compared to a year ago, but at a slower rate than in Q1. Similarly, input costs are expected to decline during the year ahead but not by as much as was anticipated earlier this year;
- Both passenger and cargo volumes were reported to have expanded during Q2, but at a weaker rate than in Q1, suggesting that growth transport volumes may have peaked in previous months;
- There is also a view that volume growth will continue in the year ahead, but not at the strong pace than was expected earlier in the year, likely reflecting concerns over weakness in the global business environment and emerging market economies;
- Respondents continue to report declines in yields in both businesses, for the recent past and the coming year, reflecting downward pressure from falling fuel prices. But the survey suggests those declines may have bottomed out as they are stable compared to the Q1 survey;
- Airline employment activity is reported to have increased slightly in Q2, reflecting the continuation of positive financial performance.