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Airline CFOs optimistic about future

Airline CFOs optimistic about future

Photo by Bloomberg

19th January 2015

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

  

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Stronger financial performance, a positive outlook, falling input costs and traffic volume growth have spiked the business confidence of CFOs and heads of cargo of airliners worldwide.

The International Air Transport Association quarterly survey of airline CFOs and heads of cargo in January showed that airliners’ profit expectations for the year ahead have become more positive after the industry reported some positive gains in the last two quarters of 2014.

The second-half uptick suggested further growth in profitability, with falling input costs, mostly owing to a drop in crude oil prices, and higher traffic volumes.

The survey showed that input costs declined over the past three months – continuing a downward trend that had started in mid-2014 – and were expected to continue into this year.

Further, passenger and cargo volumes, which expanded during the fourth quarter, were expected to increase over the next 12 months.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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