Airline executives optimistic in 2017

  • Page Views 291
  • IATA_LogoChief Financial Officers (CFOs) and heads of cargo expressed more optimism about the airline industry’s 2017 profits outlook this January versus three months ago, according to the latest business confidence survey of the International Air Transport Association (IATA).

    Profitability was unchanged in the last quarter of 2016 compared to the same period in 2015. As was the case in the previous quarter’s survey, responses were evenly balanced, with 39% of respondents reporting an increase in profits and 39% reporting a decrease.

    Indeed, the latest survey reflect an operating environment that has become more challenging since mid-2016, with fuel prices trending higher but yields continuing to trend downwards.

    The weighted-average score for profitability over the next 12 months increased again in the January survey, taking it to a six-quarter high.

    The majority, or 42 percent, of respondents expect profits to increase over the next 12 months – the first time this has been the case since the April, 2016 survey.

    Still, this proportion is some way below the 60-70% level that was the norm a few years ago, and momentum in the profitability cycle has weakened.

    The responses on the demand side were broadly consistent with the trend pick-up in passenger volumes towards the end of last year, as well as the stronger-than-expected 2016 peak season for air freight.

    Nevertheless, participants in the IATA survey remain very positive about the demand outlook for passengers and cargo in 2017.

    Given the recent pick-up in the economic cycle, the majority, or 74%, of respondents expect passenger volumes to increase over the next 12 months – the highest proportion since October, 2013.

    All told, the forward-looking weighted-average score remained stable at a high level, broadly in line with its five-year average.

    In keeping with signs of a strong 2016 peak season for air freight, 52% of respondents reported an annual increase in cargo volumes in the final quarter of last year.

    The wider global trade backdrop remains weak, but the weighted-average score for volumes over the next 12 months increased again in the January survey.

    Already, 31% of respondents reported an annual increase in operating costs in the fourth quarter of 2016, the highest proportion since July, 2014.

    With a rebalancing in the oil market slowly taking place, and some signs of emerging labor cost pressures, the forward-looking weighted-average score remained above the 50-mark for just the second time in the past 10 surveys, pointing to a further increase in input costs over the coming year.(E.V. Abadilla, mb)

    Share

    New Posts Recently publish post More

    • 17 October 2017
      2 days ago No comment

      Block by Block Explores Immigrant Experience

      Block by Block took place on Sunday, September 24, in one of Canada’s oldest immigrant neighbourhoods, Strathcona, Vancouver. The Block Party explored how immigrants managed to find a sense of belonging in Canada and engaged the local community in conversations about what it means to be a new settler ...

    • 17 October 2017
      2 days ago No comment

      Filipino-Australian Artists Come to Vancouver

      Emily Carr University of Art + Design is pleased to welcome Filipino artists Isabel and Alfredo Aquilizan to Vancouver as the recipients of the Fall 2017 Audain Distinguished Artist-in-Residence. Isabel and Alfredo Aquilizan currently live and work in Brisbane, Australia. They have been collaborating for decades and through their ...

    • 17 October 2017
      2 days ago No comment

      BoI reports investments up by 33%

      Investment pledges climbed 33 percent in the first nine months to P381.17 billion from P286.44 billion a year ago, the Board of the Investments said Tuesday. Trade Secretary and BoI chairman Ramon Lopez said the amount represented about 76 percent of the agency’s investment target of P500 billion for ...

    • 14 October 2017
      4 days ago No comment

      Pinay model plays role in raging Hollywood sex scandal

      Her Facebook fan page describes her as a mix of different nationalities: Filipino, Italian, Spanish, and Greek. Meet Ambra Battilana Gutierrez, the Filipino Italian model who had accused American film executive Harvey Weinstein of sexual harassment. Weinstein was a high-profile producer and executive, and now facing several allegations of ...

    • 14 October 2017
      5 days ago No comment

      Rebel in the Rye (PG )

      Catch 22! Sooner or later we all go to school. And love is gonna get ya – to coin a line from a classic 70s Rock tune. Love and school combine as Mongrel Media delivers the goods with Rebel in the Rye. Yes, countless films with school or literature ...

    %d bloggers like this: