Released 30th April 2018

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

  • When surveyed in early-April, 67% of airline CFOs and Heads of Cargo indicated an improvement in year-on-year profitability in Q1 2018 compared with the same period in 2017.
  • Importantly, the majority (61%) reported that they expect their level of profitability to improve further over the coming 12 months.
  • The positive outlook is being supported by robust demand growth, particularly on the passenger side of the business; 77% of respondents expect passenger volumes to rise over the year ahead & just 4% expect a decline.
  • 42% of respondents reported an increase in input costs in Q1, with a similar proportion also expecting increases in the year ahead. Many respondents again noted the impact of higher fuel prices as a key factor in their response this quarter.
  • Both passenger and freight yields are expected to rise further over the course of the year ahead, with the upwards trend in the weighted average scores since their 2016 trough being maintained on this occasion.
  • In a very positive outcome from the April survey, more than 50% of respondents expect to increase employment over the next 12 months, the highest outright positive response in more than a decade.

To read the full version, click here.