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Key points:
- Airline profit expectations remain strong and in line with levels seen since April 2013, according to IATA’s quarterly survey of airline CFOs and heads of cargo in January;
- There is confidence that air transport volumes will continue to grow over the next 12 months and that input costs and yields will remains stable;
- A majority (72%) of respondents expect passenger travel to expand over the year ahead, but at a slightly slower pace than in the October survey;
- Growth in cargo volumes is expected to pick-up over the next 12 months, at rates not seen since mid-2010, which reflects improvements in world trade growth and business confidence;
- Input costs are reported to have declined during Q4, mostly as a result of cost cutting measures, and respondents expect costs to remain broadly stable over the next 12 months;
- Passenger yields are expected to remain stable over the year ahead, moderating on the October survey in line with the slightly weaker outlook for traffic growth;
- Cargo yields are also expected to remain unchanged this year, despite expectations of stronger volume growth;
- Airline employment activity is reported to have increased during Q4, consistent with better financial performance, and the trend is expected to continue in the year ahead.
