Foto: Enos Moura Filho

Key points from IATA’s full report on the quarterly survey of airline business confidence:

* Airline business confidence has improved to its highest level since January 2011, though that is not particularly strong – remaining lower than late 2009 and 2010;
* Second quarter industry profits appear to have improved over the weak first quarter, but remain below last year’s results;
* Improved expectations for the next 12 months implies that airlines expect a stronger second half and better profitability in the first half of 2013;
* The main reason for the improvement in business confidence is a sharp fall in expectations for input costs, both reported for Q2 and expectations for the next 12 months;
* Yields on passenger markets are expected to improve modestly, suggesting an expected improvement in margins, but cargo yields are expected to decline further;
* Expectations for passenger market volumes also improved and cargo markets are expected to grow in the year ahead, having declined in the second quarter;
* Airlines are anticipating further improvements in productivity to help reduce non-fuel unit costs.