(Posted 07th February 2022)
|IATA is pleased to share their latest business confidence survey of airlines CFOs and heads of cargo. |
IATA’s survey of airlines CFOs and Heads of Cargo, conducted in December 2021-January 2022, shows that pressure on airline profitability diminished in Q4. The improvement is expected to continue in the year ahead. However, the respondents were more cautious than in the previous survey due to the Omicron impact, soaring jet fuel prices and rising market competition that puts pressure on yields.
A majority of survey participants reported improving passenger and cargo volumes in Q4 2021 versus Q4 2020. They also expect this trend to continue in the future – notably on the passenger side of the business.
The survey results suggest no significant change in employment levels in Q4 2021 versus the same period a year ago. On a positive note, 59% of respondents expect increased hiring in the next twelve months thanks to recovering passenger operations.
55% of the survey participants recorded higher input costs in Q4 year-on-year, largely due to soaring jet fuel prices and staff shortages. The same share of respondents expects further input cost increase in the future.
Two thirds of airlines in the survey predict that passenger yields will stabilize at current levels or fall due to increased competition in the market. On the cargo side, 58% of respondents expect the yields to remain elevated or to rise further – down from 68% in the previous survey.
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