KUALA LUMPUR, Oct 23 – Airlines’ profit expectations remain positive amid improvement in recent performances, according to the International Air Transport Association’s (IATA) quarterly survey of airlines’ Chief Financial Officers and Heads of Cargo in October. It said the recent past financial performance had started to improve again compared to a year ago, after a period of no gain in the second quarter.
“The outlook remains positive, suggesting that there will be further growth in profitability. “The survey also indicates that falling inputs costs and stronger growth in traffic volumes are responsible for the better recent financial performance as well as the positive outlook,” it said in a statement.
The association of world’s airlines said both passenger and cargo volumes were reported to have expanded during the third quarter, reflecting improvement in the demand environment after the weakness in early 2014. There was also confidence that air transport volumes would continue to expand over the next 12 months, supporting the expectation for profit improvements during the next 12 months, IATA added.