Manila Bulletin
November 10, 2012
Airline business confidence improved in October with 48% of respondents expecting an increased in profitability over the next 12 months, according to the International Air Transport Association (IATA).
However, IATA noted that the current conditions remain challenging, with responses showing a decline in the past three months, suggesting that the financial results will be down on a year ago.
“This is because respondents saw a resurgence in cost pressures in Q3, with fuel prices rising again, but with no further increase expected in the year ahead,” said IATA.
Moreover, respondents also indicated no improvement in yields in the third quarter but the outlook for both passenger and cargo yields is more positive.
Passenger traffic volumes over the past three months have increased compared to a year ago, and the 12- month outlook has improved slightly since the July survey.
Cargo volumes were reported to have fallen in the second quarter, but the heads of cargo business are expecting an improvement in the year ahead.
Expectations about employment are for a minor reduction in jobs over the next 12 months. Over the last three months, there were slightly more job cuts than those reported in the second quarter as airlines respond to the pressures on profitability, IATA added. (EHL)
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