Airline Business Confidence Index – April 2015

  • Default Size
  • Decrease Text
  • Increase Text

iata_logo__05

Key points from our full report on the quarterly survey of airline business confidence:

  • Airline profit expectations for the year ahead remain positive, consistent with improvements in recent performance, according to IATA’s quarterly survey of airline CFOs and heads of cargo in April;
  • Recent past financial performance shows improvement on a year ago, and the outlook remains positive which suggests there will be further growth in profitability;
  • The survey indicates that falling input costs and growth in volumes are responsible for better recent financial performance as well as the positive outlook;
  • Respondents reported seeing a decline in input costs in Q1 compared to a year ago, largely due lower crude oil prices, and expect the trend to continue during the year ahead;
  • Both passenger and cargo volumes were reported to have expanded during Q1, which is in line with latest air traffic statistics;
  • There is also confidence that air transport volumes will continue to expand over the next 12 months, consistent with recent improvements in business confidence and economic growth in developed economies;
  • Respondents continue to report declines in yields in both businesses, for the recent past and the coming year, reflecting downward pressure from falling fuel prices;
  • Airline employment activity is reported to have increased in Q1, reflecting improvements in financial performance.

View full report

 

– IATA Economics –