IATA: Airline profitability cycle momentum weakens
IATA’s quarterly survey of airline CFOs and cargo heads, released Jan 19, reveals a slight uptick in optimism for profits in 2017. But with a more difficult operating backdrop foreseen with rising fuel prices rise and downward-trending yields, there are indications that momentum in the profitability cycle has weakened, IATA reported in its January Airline Business Confidence Index survey. Forty-two percent of the survey’s respondents said profits will increase over the next 12 months. “But this proportion is some way below the 60%-70% level that was the norm a few years ago,” IATA senior economist David Oxley said. During the 2016 Q4, 39% of respondents reported an increase in profits and 39% reported a decrease. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2017-01-23/general/iata-airline-profitability-cycle-momentum-weakens
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IATA: Airline profitability cycle momentum weakens
IATA’s quarterly survey of airline CFOs and cargo heads, released Jan 19, reveals a slight uptick in optimism for profits in 2017. But with a more difficult operating backdrop foreseen with rising fuel prices rise and downward-trending yields, there are indications that momentum in the profitability cycle has weakened, IATA reported in its January Airline Business Confidence Index survey. Forty-two percent of the survey’s respondents said profits will increase over the next 12 months. “But this proportion is some way below the 60%-70% level that was the norm a few years ago,” IATA senior economist David Oxley said. During the 2016 Q4, 39% of respondents reported an increase in profits and 39% reported a decrease. <br/>
