Business confidence remains high, concerns for 2011: IATA

IATA released (19-Oct-2010) its Airline Business Confidence Oct-2010, which showed that while confidence going forward remains generally high, there is evidence of some concerns regarding 2011. More than 77% of respondents reported improved profitability in 3Q2010 on the back of strong revenues and cost control. In Sep-2010, IATA upwardly revised its FY2010 profit forecast to USD8.9 billion and a more subdued outlook for FY2011 of USD5.3 billion. Expectations for further improvements in demand over the 12 months ahead are still high but look to be moderating rather than accelerating given the economic outlook and that the restocking activity which stimulated freight traffic has drawn to a close. The outlook for further yield improvement has dipped back, although still remains positive. [more]