No surprises in Iata confidence survey

The latest International Air Transport Association (Iata) quarterly business confidence survey of airline chief financial officers and heads of cargo from around the world reveals few surprises. Expectations for growth in traffic volumes continue to deteriorate sharply. Recession-led demand weakness drove the volume declines experienced by half the respondents to the end of 2008, while only a quarter expect passenger demand growth in 2009. Cargo volumes continued to be weak and almost 70% of respondents expect a similar trend this year. Expectations on input cost increases have moderated in line with fuel price decreases, but an overwhelming majority also expect corresponding yield decreases going forward.