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Will there be a new 13 inch MacBook air this year
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It would be easy for Apple to upgrade the 13" model to Broadwell, although the gains would be small in terms of performance and battery life.
If the rumours of a retina MacBook air are to be believed, the rollout will likely be similar to the retina MacBook pro where both the 13" and the 15" were upgraded to ivy bridge and 12 months later the 15" was discontinued. The MacBook air may well follow this with the 13" and 11" getting a final upgrade to broadwell. It will possibly follow with the 11" continuing to be produced while the 13" is discontinued about 12 months later
A new processor is almost a certainty with Broadwell this year. However, whether there will be a hardware refresh (bezel, screen resolution, display etc.) is anyone's guess. However, with Dell and other PC makers upping the hardware game recently, I don't think Apple will let its engineers sit on their backsides for too long and get them to work on something amazing (.. or hope so).
I would absolutely LOVE a 14" display in the current 13" MBA body. There is plenty of room around the bezel to fit a 14"+ display. The super wide bezel reminds me of 1998 
I love the form factor of the 13" MBA but I would really like a little more screen real estate.
I love the form factor of the 13" MBA but I would really like a little more screen real estate.
I went from a 24" iMac to a 13" MBA. Ya know what? It wasn't that bad at all.
My only problem is when needing to look at 2 windows at once, such as when copying information from an invoice into QuickBooks, I have to keep switching back and forth because both windows won't fit on the screen. So I am going to get an external monitor to do that type of stuff on.