February 9th 2010
IATA's latest Airline Business Quarterly Survey shows confidence returning
to the sector with improvements in all key indicators. The majority of
airlines surveyed report increasing demand for both passenger and cargo
business in Q4 2009 along with improvements in profitability. The
expectation is for this to continue with more than 80% predicting continued
passenger growth through 2010.
While the results
indicate a real hike in confidence levels, in reality this
is likely to mean a reduction in losses for most rather than
a return to profit. Just over 50% expect to see cost
pressures begin to increase again but there is greater
optimism on yields which will help improve margins. A
similar majority also report plans to hold employment levels
where they are or increase them, a marked contrast to the
last quarter when jobs were still being shed.
The improved outlook is good news for all but it will take a
succession of good quarters to recover the lost ground and
make up for what has been lost.
Source: IATA Corporate Communications 9th Feb 2010.
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