IATA reports 'clear divergence' in outlook for passenger and cargo markets

IATA reported (02-Aug-2019) the results of its latest quarterly Business Confidence Index indicate "a clear divergence in the likely fortunes for the air passenger and air cargo markets", adding: "The current gap between the respective segment outlooks is the largest ever seen in our survey". IATA stated the "mixed fortunes" are broadly consistent with the IMF's recent global economic assessment, which gave "gloomy forecasts for world trade growth". The association stated its survey indicates "a sharp deterioration in expectations for cargo demand over the next 12 months", while growth in passenger demand "is expected to remain relatively robust". IATA noted a similar "diverging pattern" is evident for yields, with passenger yields expected to increase over the coming 12 months while cargo yields are forecast to fall over the same period. IATA stated: "As a result of the softness on the cargo side, together with rising input costs, industry-wide profitability remains under pressure", adding: "The expected improvement in passenger demand and yields is not proving to be sufficient to raise expectations for the profit outlook". [more - original PR]