IATA Apr-2020 Business Confidence Survey shows expectations of weakness for next 12 months

IATA reported (29-Apr-2020) the following highlights from its Apr-2020 Business Confidence Survey of airline CFOs and heads of cargo:

• Sharp weakening in the 1Q2020 business environment amid the spread of COVID-19. The challenging business backdrop - including weakness in profitability - is expected to be maintained through the next 12 months;
• Passenger and cargo demand both collapsed in 1Q2020, although the decline was more pronounced for passenger traffic. Yield developments were mixed, with respondents reporting that passenger yields eased over the course of the quarter, while cargo yields increased;
• Views for the year ahead are mixed; while some respondents noted that airfares may decline to help stimulate demand and attract travellers, others mentioned that social distancing measures (such as not selling the middle seat) may force carriers to raise prices to ensure operations remain commercially viable;
• With the recovery in demand likely to be slow, 80% of respondents expect to have to decrease employment levels over the coming 12 months;
• A consequence of the upheaval in the airline industry is that respondents report a widespread decrease in input costs due to internal cost reduction programmes and downscaling of operations, in addition to falling fuel prices. [more - original PR]