Global airlines expect to see more passengers and higher profits over the next 12 months, a new IATA survey reports.
Eighty-three percent of airlines that responded to International Air Transport Association said they anticipate a rise in traffic, up significantly from the 62% of respondents who said that in July.
Sixty-three said they expect profits to increase, thanks in part to a reduction in their internal costs, including fuel and compensation.
Wall Street analysts believe consolidation has improved the industry’s outlook, reducing the number of competitors and allowing airlines to cut capacity and increase fares.
In a recent report Standard & Poor’s predicted the supply-demand equation will continue to shift in favor of the airlines.
"On an inflation-adjusted basis, air travel is still extremely cheap, particularly when accounting for the increase in oil prices over the past five years," it said. "However, we think airfares are likely to continue to head higher."
Report by TravelMole US
