Airline Profit Expectations For 2015 Become More Positive, Says IATA

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KUALA LUMPUR, Jan 20 – Airline profit expectations for this year have become more positive, consistent with improvements in recent performance, the International Air Transport Association (IATA) said.

In its Airline Business Confidence Index quarterly survey of airline chief financial officers (CFOs) and heads of cargo in January, respondents expressed confidence that financial performance had started to improve in the second half of 2014, after no gains in the second quarter (Q2), and the outlook remained positive, suggesting there would be further growth in profitability.

Respondents reported seeing a decline in input costs in Q4 2014, largely due to a fall in crude oil prices in recent months, and expect the trend to continue during the year ahead, IATA said in a statement today. On input costs, it said respondents expected the trend to continue in 2015, with an outlook for further decline in input costs.

The input costs are reported to have declined during the past three months, continuing a downward trend which started in mid-2014. Passenger yields were expected to continue to decline and at a faster rate in Q4 compared to Q3. It said the outlook moving forward would be much the same, potentially reflecting the expected decline in fuel-related costs.

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