According to the International Air Transport Association (IATA) quarterly survey of airline Chief Finance Officers and heads cargo, Airline business confidence in July, is strong contrary to deterioration sign it demonstrated last two months.

However, 71 percent of respondents in the survey are expecting an improvement in profitability over the next 12 months.

The IATA Director, Tony Tyler said there is confidence over the growth of travel and cargo markets in the year ahead and, although yields are no longer expected to improve, the cost environment has stabilized. Part of the strength of confidence is due to the structural improvements that have taken place.

“According to survey responses on recent past traffic volumes, passenger markets continue to outperform cargo. Respondents foresee growth in both businesses over the next 12 months; input costs are reported to have declined during the recent past, with jet fuel prices now at the bottom of the 2-year range. Expectations for input costs have also been revised down to the no change level for the year ahead,” he stated.

He also said passenger and cargo yields remained unchanged in Q2 2013 compared to the last period, adding that the less optimistic outlook for yields over the next 12 months is consistent with easing input cost pressures, and that during the month under survey, there was no change in employment during Q2 and the trend is expected to continue over the next 12 months.

He however noted this is a slight deterioration on April when some growth in jobs was expected; hence the results of the July survey show that a majority of respondents expect to see improvements in profitability over the next 12 months.