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Airline heads confident that cargo volumes will grow

By Staff Reports on January 23, 2014
tagged iata

Airline profit expectations remain strong, according to the International Air Transport Association’s quarterly survey in January of airline CFOs and heads of cargo.

Airline profit expectations are in line with levels seen since April 2013. There is confidence that air transport volumes will continue to grow over the next 12 months and that input costs and yields will remains stable.

Growth in cargo volumes is expected to pickup over the next year, at rates not seen since mid-2010, which reflects improvements in world trade growth and business confidence, respondents said. A majority expects passenger travel to expand over the year ahead, but at a slightly slower pace than in the October 2013 survey.

Input costs are reported to have declined during the fourth quarter, mostly as a result of cost-cutting measures, and respondents expect costs to remain broadly stable over the next 12 months.

Cargo yields are expected to remain unchanged this year, despite expectations of stronger volume growth.

Airline employment activity is reported to have increased during the quarter, consistent with better financial performance, and the trend is expected to continue in the year ahead. 

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