[ATLANTA] Airlines are confident that their industry will boost revenue over the next year and consider joint ventures a more viable growth driver than mergers, a PricewaterhouseCoopers survey of nearly 40 chief executive officers at carriers worldwide finds.
The report said airline CEOs are more upbeat about the prospects for their industry than all CEOs as a group. Eighty-two per cent of airline CEOs are confident that their industry's revenue will rise over the next year, compared with 68 per cent of all CEOs that took part in PwC's annual global survey.
Expanding middle classes in Asia and emerging markets such as Latin America have boosted travel demand and helped airlines bounce back from losses since the 2008-2009 downturn. The global industry is expected to earn a net profit of US$18 billion this year, up from an estimated US$10.6 billion for 2013, according to a June forecast by the International Air Transport Association (IATA) trade group.
Global airlines will generate revenue of US$746 billion in 2014, up from US$710 billion last year, IATA projects.