Dubai: A majority of global airline executives expect hiring to go up in the next 12 months due to a speedy recovery in passenger operations, according to an IATA survey. Although there was no significant change in employment levels in the fourth quarter of last year, 59 per cent of respondents expect recruitment efforts to gain momentum this year.
“The staff hiring should be fueled by the ramp up of passenger operations as travel demand improves,” the IATA report notes. “The forward-looking weighted score surpassed pre-crisis levels for the first time since the pandemic started.”
The survey shows that pressure on airline profitability diminished in the latest quarter with the industry poised for a gradual recovery this year. “However, respondents were more cautious than in the previous survey due to the Omicron impact, soaring jet fuel prices and rising market competition that puts pressure on yields,” said IATA.
Almost all respondents reported an increase in passenger numbers during the fourth quarter compared with the same period a year ago – an improvement from the 86 per cent in October and 81 per cent in July. IATA said the air travel recovery had been driven by the relaxation of cross-border travel restrictions in some key markets, including the reopening of transatlantic routes in early-November.
A majority expects the recovery in passenger traffic will continue despite the Omicron outbreak. IATA said that further relaxation of travel restrictions and more efficient pandemic containment were cited as the key drivers behind the expected air travel rebound
Cargo growth continues
On the cargo side, 71 per cent of respondents reported growing volumes in the fourth quarter, while 21 per cent indicated no change. Those stating improvement mentioned higher demand for air cargo during the peak season partly thanks to congested supply chains in the shipping industry. IATA noted that another supportive factor was also recovering belly-hold capacity with the restart of passenger operations. The industry is optimistic about cargo demand in the year ahead, with nearly two-thirds of survey respondents predicting further improvement in air cargo traffic.
