IATA Business Report

With its AGM scheduled for Doha 1-3 June (see also Hamed International in this issue) IATA has issued a statement saying that airline profit expectations remain strong and broadly in line with levels seen over the past year.

There is confidence that air transport volumes will continue to expand over the next 12 months, supporting an improved outlook for (passenger) yields. In addition, input costs are expected to decline. IATA surveys airline CFOs and heads of cargo every quarter.

A majority (76%) of respondents expect passenger travel to expand over the year ahead, at a faster pace than in the January survey; cargo volumes are also expected to grow during the year ahead – which is consistent with recent improvements in world trade growth and increases in business confidence – but at a slower rate than passenger demand.

Input costs have declined during Q1, mostly as a result of cost cutting measures, and respondents expect the trend to continue over the next 12 months; passenger yields are expected to increase slightly over the year ahead, improving on the January survey as the outlook for air travel growth picks-up; by contrast, cargo yields are expected to decline slightly, despite a view toward stronger volume growth ahead.   https://www.iata.org

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