| | | | 
| Airline Business Confidence Index - July 2011 |
Released 18 July 2011
Key points from our full report on the quarterly
survey of airline business confidence:
|
- The squeeze on airline profits seemed to intensify in Q2, but expectations for profits in the year ahead improved after the sharp decline in the April survey;
- Over the next 12 months a small net balance of respondents expect an improvement in profits;
- This is considerably better than the situation in the April survey but shows airlines are still far less confident than they were in 2010;
- Linking the survey results to actual profit outcomes suggests that in April airlines were expecting losses, as in 2008, but are now expecting moderate profits;
- The improvement over April was driven by cost (fuel) expectations, which have diminished to an expectation of a small rather than a large rise;
- Only a small net balance of airlines expect to be able to raise passenger yields over the next 12 months, and cargo yields are not expected to rise;
- But airlines are confident that passenger and cargo markets will continue to expand, with a majority that has barely declined from the peak of the post-recession rebound;
- Airlines are continuing to increase jobs as a result;
- Whereas the April survey had shown airlines more bearish than IATA's own forecasts, this July survey has shown airline confidence more in line with the forecast of $4 billion in net post-tax profits this year.
- IATA Economics - |
| | | | Receive alerts of new releases from IATA Economics: subscribe at www.iata.org/optin and select "Economic Briefings"
|
| | | International Air Transport Association
33, Route de l'Aéroport, P.O. Box 416, 1215 Geneva 15 Airport, Switzerland. |
| | | IMPORTANT PRIVACY INFORMATION: The International Air Transport Association (IATA) does not sell or rent your email address to any third party. You received this email message due to your membership, participation or interest in IATA. IATA sends various advertisements, promotions and special announcements regarding products and services that we feel may be of interest to you.
| | |
|
| | | | |
|