80% of airline CFOs and Heads of Cargo indicated an improvement in year-on-year profitability in Q3 2017 compared with the same period in 2016 – the strongest outcome in 10 years.
Furthermore, 87% of respondents believe that the profit outlook will be unchanged or improve over the year ahead, supported by ongoing robust demand; none of this quarter’s survey respondents expect to see a reduction in either their passenger or freight volumes over the next 12 months.
A higher share of respondents have seen their input costs increase this quarter compared with the Q2 survey, driven by gains in the world oil price. This upward trend in oil prices is broadly expected to continue to impact airline costs in the year ahead.
Matching the rise in input costs, 65% of respondents indicated that passenger yields have risen in Q3 – the highest proportion in six years, further supporting the view that passenger yields have bottomed. Almost half of respondents indicated an increase in freight yields over the same period.
The outlook for industry employment over the next 12 months remains positive, with more than 40% of respondents expecting to increase employment and a further 28% expecting to maintain current levels.
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