IATA: Profits improving and airlines expect continued growth

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Profits have improved over the last three months and are unlikely to decrease over the next year, airline heads of cargo and chief financial officers have said in a survey.

The International Air Transport Association (IATA) released it Airline Business Confidence Index October 2017 survey, and it says 80 per cent of respondents reported profitability improved over the last three months, the strongest outcome in 10 years.

It also says 87 per cent of respondents predict profits will either stay the same or improve over the next 12 months, supported by on going robust demand.

Demand has been strong, with 57.7 per cent saying they saw improvements in the last three months, and 30.8 per cent seeing no change.

None of the respondents expect cargo demand to decrease in the next 12 months, with 48 per cent predicting an increase and 52 per cent anticipating no change.

Yields have been improving, with 48 per cent seeing an increase over the past three months and only eight per cent reporting a decrease.

Over the next 12 months, 32 per cent predict yields will increase and 56 per cent expect no change.

The number of respondents expecting input costs to increase has risen, with 40 per cent predicting increases due to recent developments in oil prices, and another 40 per cent expecting no change.