The Borneo Post

IATA survey shows airlines reporting higher profits in 2Q

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KUALA LUMPUR: More than three- quarters of airline chief financial officers and heads of cargo indicated that profitabil­ity increased in the second quarter of 2017 compared with the same period in 2016, according to a quarterly airline business confidence index survey conducted by the Internatio­nal Air Transport Associatio­n (IATA).

Seventy- seven per cent of respondent­s reported that profitabil­ity increased in, year-onyear, terms in the second quarter of this year, more than double the correspond­ing share in the previous survey and the highest proportion in almost seven years.

The passenger side remained consistent with the robust demand backdrop seen during the opening months of this year, with 71 per cent of the respondent­s reporting a year-on-year increase in passenger traffic in Q2 2017, which resulted in the backward-looking weightedav­erage score recovering to a fivequarte­r high.

“Eighty- one per cent of respondent­s expect passenger volume to rise further over the year ahead – the highest proportion since the October 2013 survey,” it said in a statement.

On the input cost, the survey revealed that half of the respondent­s reported a decrease in the quarter under review compared with a year ago while a further 31 per cent of the respondent­s reported no change.

“A number of respondent­s noted the role that efficiency gains and optimisati­on efforts have played in decreasing costs. A modest 19 per cent of respondent­s reported an annual increase in input costs in the quarter.

“Given renewed weakness in crude oil and jet fuel prices, just 19 per cent of respondent­s reported that they expect input costs to increase over the coming 12 months; this was the lowest proportion in six surveys,” it said. — Bernama

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