2015 expected to be more profitable for airlines: IATA

Airline profit expectations for 2015 have become more positive, consistent with improvements in recent performance, according to International Air Transport Association’s (IATA) quarterly survey of airline chief financial officers and heads of cargo in January 2015.

Financial performance started to improve in the second half (H2) of 2014, after no gains in the second quarter (Q2), and the outlook remains positive, which suggests there will be further growth in profitability.

The survey indicates that falling input costs and growth in volumes are responsible for better recent financial performance as well as the positive outlook.

Respondents reported a decline in input costs in Q4, largely due to a fall in crude oil prices over recent months, and expect the trend to continue during the year ahead.

Passenger volumes were reported to have expanded during Q4, which is consistent with latest air traffic statistics. There is also confidence that air transport volumes will continue to expand over the next 12 months, despite rising concerns about the health of the global economy.

Respondents continue to report declines in yields in both business, for the recent past and this year, potentially reflecting the expected decline in fuel-related costs.

Source: http://goo.gl/MYJGYC