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Airlines optimistic following oil price drop

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A decline in costs due to the fall in crude oil prices over recent months has led airlines to take an optimistic view of 2015.

Profit expectations for the year ahead have become more positive, according to Iata’s quarterly survey of airline financial chiefs this month.

Falling costs and growth in volumes are responsible for a better recent financial performance as well as the positive outlook, the research indicates.

There is also confidence that air transport volumes will continue to expand over the next 12 months, despite rising concerns about the health of the global economy.

Iata said that the outlook remains positive, which suggests there will be further growth in profitability.

Passenger and cargo volumes were reported to have expanded during the fourth quarter of 2014, which is consistent with latest air traffic statistics.

Respondents continue to report declines in yields in both businesses, potentially reflecting the expected decline in fuel-related costs, Iata said.

No growth in employment by airlines is expected for the year ahead.

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