Airline business confidence remains solid according to IATA’s quarterly survey of airline CFOs and heads of cargo in October, with 63% of respondents expecting an improvement in profitability over the next 12 months;
There is confidence about the growth in air transport volumes over the next 12 months, supporting an improved outlook for yields. In addition, input costs are expected to decline. These factors combined with structural improvements are helping maintain the solid profits outlook for the airline industry;
Passenger travel is expected to increase strongly over the year ahead, consistent with recent improvements in demand indicators;
Cargo volumes are also expected to improve during the year ahead, but at a slower pace than air travel;
Input costs are reported to have declined during Q3, despite increases in jet fuel prices, with respondents referring to cost management as the reason. Input costs are expected to decline during the year ahead;
Passenger and cargo yields are both expected to rise over the next 12 months, supported by an optimistic demand outlook, particularly for the passenger business;
Airline employment activity is reported to have increased during the past three months, consistent with the improvement in financial performance. The trend is expected to continue in the year ahead.
