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            january 22, 2020

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Air cargo sector has expectations of improved profit


More than half of the air cargo sector has expectations of improved profit based on improving passenger and cargo volumes in the final quarter 2012, according to IATA's latest quarterly research.
Of the respondents, which include chief financial officers and heads of 240 carriers and cargo companies, the most forecast improved passenger volumes from 52.9 per cent in a survey taken in October to 71.4 per cent.
Airline confidence in the cargo sector was at 55 per cent of all respondents based on world trade growth helped by less pressure on jet fuel prices, previously making up 30 per cent of operating costs compared to 13 per cent a decade before.
It is hoped that the addition of oil stocks from crude oil producers such as China, Colombia, South Sudan and Yemen will contain prices during 2013.
Emerging market countries are likely to see more dynamic market than Europe in the middle of debt crisis and other countries in recessional grip, respondents said.
"If others follow, the ripple effects would most certainly be felt in all global markets," said IATA director-general Tony Tyler of a "fragile industry" that barely made one per cent profit in 2012, reported China Daily.

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