Air transport net profits to soar in 2018

Violet Tucker
Декабря 7, 2017

The global airline industry's net profit is expected to rise substantially in 2018 due to strong demand, efficiency and reduced interest payments, a global airline association said on Tuesday.

IATA forecast the global aviation industry's net profit to rise to US$38.4 billion (NZ$55.7b) in 2018, up from 2017's expected US$34.5b net profit.

The International Air Transport Association (IATA) announced global passenger traffic results for October showing that demand (measured in revenue passenger kilometres, or RPKs) rose 7.2% compared to the same month past year.

While the momentum may moderate in 2018, e-commerce will likely help underpin global cargo growth.

Passenger numbers are expected to increase to 4.3 billion in 2018.

The growth in passenger numbers for SA (international and domestic) was expected to be between 3% and 4% a year for the next five years, according to projections by Airlines Association of Southern Africa.

IATA said the forecast increase in passenger fares was in line with expected inflation. With oil prices trending higher, jet fuel prices are expected to rise by 12.5 per cent to US$73.8 per barrel next year.

Читайте также: Germany's SPD denies agreeing coalition talks with Angela Merkel

"It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses".

Airlines and cargo companies also see opportunities from commercial drones, Celine Hourcade, head of cargo transformation at IATA said.

The group disclosed in Geneva, Switzerland that as a result of the situation, African airlines' traffic grew 7.5 per cent year-on-year in October, up from 3.6 per cent in September.

Performance for individual markets in South-east Asia will also vary, Ms Png added.

"The region's carriers face challenges to their business models, and from low oil revenues, regional conflict, crowded air space, the impact of travel restrictions to the USA, and competition the new "super connector" [Turkish Airlines]", IATA said. Players that will receive a lift from the more favourable supply environment include AirAsia. "Many of them are in the hands of governments". Typical inspections now last 6 to 10 hours and cost airlines $10,000 for each hour the plane is on the ground, IATA said.

In particular, South-east Asian carriers are facing fierce competition on long-haul routes to North America and Europe, from the Gulf trio and the key Chinese carriers.

При любом использовании материалов сайта и дочерних проектов, гиперссылка на обязательна.
«» 2007 - 2017 Copyright.
Автоматизированное извлечение информации сайта запрещено.

Код для вставки в блог

Other reports by

Discuss This Article