IATA’s April 2021 survey of airline CFOs and heads of cargo confirmed that Q1 2021 did not bring a relief for airline industry financials. However, respondents are more optimistic about the next twelve months in all metrics.
Expectations for both passenger and cargo demand improved. Respondents anticipate passenger traffic to recover in the second half of the year with the support of vaccine rollout.
Passenger yields stayed at low levels in Q1 but are expected to improve in the next twelve months. Similarly, cargo yields expected to continue to improve, supporting airline revenues.
70% of the respondents reported a reduction in their workforce in Q1 as the pandemic continues to affect airline operations. On the other hand, expectations for the future improved as only 15% of respondents expect a further decrease in employment levels in the next twelve months.
The majority of surveyed airlines saw their input costs increase in the past three months due to high fuel prices and fixed costs. Moreover, more than half of the respondents expect their unit costs to continue to increase in the next twelve months with the resumption of air travel in the summer.
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