IATA survey demonstrates renewed confidence

The future appears to be particularly promising in the Asia Pacific market.
image
By Patrick Burnson, Executive Editor
July 21, 2010 - LM Editorial

Following its promising forecast made last month, the International Air Transport Association (IATA) is reporting a significant surge in air cargo demand. The future appears to be particularly promising in the Asia Pacific market.

Results from IATA’s quarterly survey conducted this month also indicate a further improvement in airline business confidence, said spokesmen. Survey respondents comprised airline CFOs and cargo executives.

Indeed, nearly 70 percent of respondents reporting improved profitability during the last quarter and a similar number expecting further improvement over the year ahead.

One finding that should come as no surprise: In the Americas and Asia Pacific, two-thirds of those surveyed expect further increases in profits.

While there is regional variation - largely in line with the strength of economic recovery being experienced - the majority of respondents in all regions report improvements during the last quarter and expect either stability or further improvement over the year ahead.

As reported in LM, IATA revised its June forecast for 2010 industry financial performance from a loss of $2.8 billion to a profit of $2.5 billion.

According to IATA researchers, confidence about further improvements in profitability over the twelve months remains high. Some regional variation remains, with Europe being the only region still registering possible profitability decreases - although that the overwhelming majority (80 percent) of European respondents are actually positive on prospects. In the Middle East two thirds of respondents expect ‘no-change’ in profitability indicating a fairly stable outlook.



About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The long-simmering court battle over whether FedEx Ground’s workers are independent contractors or employees appears headed to the appellate courts—and maybe the U.S. Supreme Court.

Carload volume headed up 4.3 percent to 298,376, and intermodal units, at 273,376 containers and trailers were up 4.8 percent annually.

In light on various service-related freight railroad service issues, the Department of Transportation’s Surface Transportation Board (STB) recently announced it is now requiring Class I railroads to publicly file weekly data reports on service performance. These weekly reports are slated to begin on October 22.

According to its data, spot market volume for the month of September was up 32 percent on an annual basis and set a new record for the 14th straight month, with gains for each of the three equipment categories it tracks, including load availability for: dry vans up 42 percent; refrigerated (reefer) up 24 percent; and flatbed volume up 46 percent.

FedEx Freight and Con-way Freight, two of the largest non-union LTL carriers in the nation, are battling organizing efforts by the Teamsters union in a closely watched unionization effort.

Article Topics

News · Air Freight · Global Trade · Logistics · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA