Wednesday, 23 July, 2014

Published July 18, 2014
Airline chiefs bullish on revenues over next one year: PwC poll
They are focusing on new and existing markets, innovation, new JV and alliances
BT 20140718 NRCEO18 1182525

Looking up: While Iata has cut its profit forecast twice this year, profitability has been on an upward trend overall, thanks in part to a growing middle class in emerging economies. - PHOTO: BLOOMBERG

[SINGAPORE] The majority of airline chief executives are bullish that the industry will book higher revenues over the next one year, with growth strategies hinging on new and existing markets, innovation, as well as new joint ventures (JV) and alliances, according to a report.

Of the airline chiefs polled, 82 per cent are confident that the airline industry will chalk up heftier revenues over the next one year, a PricewaterhouseCoopers (PwC) survey showed. However, this number slipped slightly to 79 per cent when airline heads expressed their confidence about revenue growth for their own companies over the next 12 months.

Airline CEOs are also keeping a close watch on costs, with 69 per cent having implemented a cost-reduction initiative in the last year and 64 per cent planning to launch new measures in the next one year.

Last month, the International Air Transport Association (Iata) trimmed its industry forecast to project a combined net profit of US$18 billion for global carriers, on the back of revenues of US$746 billion.