Airlines report strong 2010 Q1 performance

A survey released by the International Air Transport Association (IATA)” the apex trade body for international airlines ” reveals that profitability conditions improved during the previous quarter compared to the last survey. The current survey, Airline Business Confidence Index-April 2010, was carried out just before volcanic eruptions in Iceland hit international air traffic.

The 2010 survey indicates that the dramatic spike in cargo as well as passenger demand was sustained during the first quarter of this year. The survey states that 80% of respondents posted increased passenger demand, and just over 70% saw a rise in the cargo-business operations. It is likely that the boost in demand will remain high over the next 12 months.

As for passenger yield, the survey shows that an appreciable proportion of respondents continue to report a weakness on that count. However, a third of the respondents have enjoyed increases.

In the domain of employment, more than 50% of the respondents reported "no-change' in employment levels during the previous quarter. Since a third of the respondents have registered employment increases, the balance of responses has touched 59.5, auguring expansion ' for the first time in a year. Almost 50% of respondents are confident that employment levels will rise in the next 12 months.

As far as costs are concerned, they seem to be relatively low. However, a rise is expected over the next 12 months.