2014 ‘a better year for air cargo’
05 / 02 / 2014
AIRLINE profitability expectations remain strong for 2014 and in line with levels seen since April 2013, according to IATA’s quarterly survey of airline chief financial officers and heads of cargo.
There is confidence that air transport volumes will continue to grow over the next 12 months and that input costs and yields will remain stable, it finds.
A majority (72 per cent) of respondents expect passenger travel to expand over the year ahead, but at a slightly slower pace than in the previous (October) survey; and growth in cargo volumes is expected to pick-up over the next 12 months, at rates not seen since mid-2010.
“This reflects recent improvements in world trade growth and increases in business confidence,” says a statement.
Input costs are reported to have declined during Q4 of last year, mostly as a result of cost-cutting measures, and respondents expect costs to remain broadly stable over the next 12 months.
With passenger yields expected to remain stable over the year ahead, moderating on the October survey in line with the slightly weaker outlook for traffic growth, cargo yields are also expected to remain unchanged in 2014, despite expectations of stronger volume growth, says the IATA survey.
“The survey results for cargo are positive and reflect important developments in the demand environment,” IATA says.
Respondents reported seeing growth in airfreight volumes over recent months, which is consistent with freight data.
“The outlook for cargo volumes continues to improve, with more than 66 per cent of respondents expecting an increase in demand over the next 12 months – the biggest expected rate of increase since mid-2010, a very strong year for cargo.”