28 Apr 2014

Air industry expects profit levels to continue

7:04 am on 28 April 2014

The International Air Travel Association says airline profit expectations remain strong and broadly in line with levels seen over the past year.

IATA says a quarterly survey of airline chief financial officers and heads of cargo shows there's confidence that air transport volumes will continue to expand over the next 12 months.

That supports an improved outlook for passenger yields. As well, input costs are expected to decline.

A majority, or 76 percent, of respondents to the April survey expect passenger travel to expand over the year ahead, at a faster pace than in the January survey.

Cargo volumes are also expected to grow during the year ahead, consistent with recent improvements in world trade and increases in business confidence, but at a slower rate than passenger demand.