Airlines Upbeat on Profit Expectations as Airports Witness Passenger Traffic

International Air Transport Association (IATA) confidence survey index shows that airline profit expectations remain strong and in line with levels seen since April 2013, even as the recent remodelling of the Nigerian airports across the country has led to a significant increase in passenger traffic.

IATA’s quarterly survey of airline CFOs and heads of cargo in January indicated that there is confidence that air transport volumes will continue to grow over the next 12 months and that input costs and yields will remains stable and a majority (72%) of respondents expect passenger travel to expand over the year ahead, but at a slightly slower pace than in the October survey.

Other findings of the survey are that growth in cargo volumes is expected to pick-up over the next 12 months, at rates not seen since mid-2010, which reflects improvements in world trade growth and business confidence; Input costs are reported to have declined during Q4, mostly as a result of cost cutting measures, and respondents expect costs to remain broadly stable over the next 12 months and passenger yields are expected to remain stable over the year ahead, moderating on the October survey in line with the slightly weaker outlook for traffic growth.

Also, cargo yields are also expected to remain unchanged this year, despite expectations of stronger volume growth and airline employment activity is reported to have increased during Q4, consistent with better financial performance, and the trend is expected to continue in the year ahead.

Similarly, Mr. Yakubu Dati, general manager, Communications for Aviation Parastatals, said that a total of 3, 807,001 passengers used the airports in the third quarter of 2013 as against 3, 524, 497 passengers in the third quarter of 2012 representing a growth of eight percent.

This growth, he attributable, to the massive investment in the airports such as the expansion of the ‘E’ and ‘D’ fingers at the Murtala Muhammed International Airport (MMIA), Lagos, the busiest airport in the country and the installation of modern facilities such as conveyor belts, security screening machines, immigration counters and transit lounges.

The Airport Remodelling Project is a key component of the Aviation Master Plan initiated by Princess Stella Oduah, minister of Aviation.

 It is designed to modernise all the 22 airports terminals in the country making them more customer and investment friendly.