Aviation executives expect rise in airline profitability in months ahead
Airline CFOs and heads of cargo have reported a decline in profitability in the first quarter of this year, but expect profitability to rise over the coming 12 months.
Nevertheless, the International Air Transport Association’s (Iata’s) latest quarterly business confidence index, recorded a wide range in responses from executives, with the overall expectations for the coming 12 months being less positive than that recorded in the January survey.
On the demand side, the survey responses were consistent with the robust growth seen in both passenger and freight volumes at the start of this year.
“Our respondents remain very positive about demand prospects for the year ahead; more than three-quarters expect passenger volumes to rise, while the forward-looking weighted-average score for freight has now risen in each of the past four quarterly surveys,” Iata said in a statement this week.
The industry body added that 41% of respondents reported a yearly increase in operating costs in the first quarter of this year – the highest proportion in four years – reflecting a combination of higher fuel prices and rising labour cost pressures.
“These trends are expected to continue over the year ahead. The forward-looking weighted-average score rose to its highest level since April 2012.”
The downward trend in passenger yields has showed tentative signs of turning around in recent months, and 35% of survey respondents reported higher yields in the first quarter of this year compared with a year ago.
Meanwhile, heads of cargo are confident about prospects for freight yields over the coming 12 months. The forward-looking weighted-average score for freight yields jumped above the 50-mark for the first time since July 2014.
Airline employment activity, meanwhile, increased for the ninth consecutive quarter.
“More than one-third of respondents reported that they expect to increase employment levels over the next 12 months.”
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Sulzer South Africa, established in 1922, partners with critical industries like power, oil & gas, water, mining, and chemicals to boost...
VISIT SHOWROOM
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
