PRLog - Nov. 20, 2012 - The global airline industry continues to face challenges from the deepening of the European debt crisis that is wiping out the positive impacts of lower fuel prices, increasing air traffic and improved freight market according to Patrick David, a senior executive with Coracall, a global BPO and Call Centre Company which specializes in the travel and leisure industry.
“The scenario is unlikely to change for the remainder of the year”, Mr David said. “The International Air Transport Association (IATA) still projects overall airline profits of $3.0 billion for 2012 with net profit margin of 0.5% on the back of healthy growth in North and South America. But the profit outlook is less than $7.9 billion earned in 2011 and $16 billion earned in 2010. This steep decline in the industry’s profitability is a function of the overall unfavorable macro backdrop in which the industry has to operate this year.”
“Airlines will need to continue to look at their cost base and customer retention will be a key driver for success. We believe that customer service functions will undergo consolidation and delivery location will be critical. With our facilities in both South Africa and the Philippines we are able to offer cost effective solutions to global carriers, including multi lingual support from Manila.”
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