Airline profit expectations remain positive, says IATA

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KUALA LUMPUR (April 17): Airline profit expectations for the year ahead remain positive, consistent with improvements in recent performance, according to the International Air Transport Association’s (IATA) quarterly survey of airline CFOs and heads of cargo in April.

In a statement yesterday, the IATA said recent past financial performance shows improvement a year ago, and the outlook remains positive which suggests there will be further growth in profitability.

It said the survey indicated that falling input costs and growth in volumes are responsible for better recent financial performance as well as the positive outlook.

The association said 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.

It said 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,” it said.