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IATA April Airline Business Confidence Survey

IATA April Airline Business Confidence Survey

Quarterly business confidence survey of airlines CFOs and heads of cargo.

» Aviation - W | Tuesday, April 24, 2012 • Air News Times
Key points:

• Airline industry confidence has improved slightly in IATA’s April survey of CFOs and heads of cargo;

• Respondents reported weakness in Q1 profits, but to a lesser degree than in Q4 2011 – the view for the next 12 months is now also less pessimistic;

• There has been an improvement in passenger traffic over the last quarter, with an expectation for further growth in the year ahead;

• The outlook for cargo is also more optimistic, consistent with improved indicators of business confidence and trade over recent months;

• Input costs stayed high in Q1, with 64% of respondents indicating they experienced increased cost pressures – the expectation is for further increase over the next 12 months;

• Yield expectations in passenger markets have strengthened, with the 12 month outlook improving after some weakness over the last 3 months;

• Downward pressure is expected to ease on cargo yields over the next 12 months, after significant weakness in Q1;

• Employment levels are still weak, but not as weak as in Q4 2011 - the outlook for the year ahead signals little improvement in employment levels;

• Profit and traffic expectation for the next 12 months have improved compared to the previous quarter, but confidence is still weak and close to levels seen in periods of diminished profitability and slower traffic growth. 
Tags: IATA,
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