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IATA - October 2010 Airline Business Confidence Index

posted Oct 19, 2010, 3:58 AM by Elaine Bell

Airline Business Confidence Index - October 2010

Released 19 October 2010

Key points from our full report on the quarterly
survey of airline business confidence



  • Expectations for airline profitability over the next 12 months fell slightly, with 60% expecting a further improvement compared with 69% in the July survey;
  • Q3 profitability appears to have been very good, with the highest proportion of respondents indicating an improvement since April 2007;
  • Further growth in passenger and cargo markets is expected, however the peak has clearly been passed and expectations are starting to diminish;
  • Expectations for yields over the next 12 months fell sharply with the majority expecting no change, following a very strong Q3 outcome;
  • Unit costs continue to stabilize and expectations of a modest increase over the next 12 months have now improved to no change;
  • Growth in employment by airlines is now starting to slow, with 42% expecting to increase jobs over the next 12 months;
  • The results of this survey are consistent with IATA's September forecast for $8.9bn net profit this year, followed by $5.3bn in 2011 as business conditions become less favourable.
  • - IATA Economics -

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