jh-siesta.com
jh-siesta.com January 21, 2018


IATA: With passenger growth will come higher airline profits

06 December 2017, 12:34 | Sammy Green

Global passenger traffic up 7.2pc in Oct: IATA

IATA Director General Alexandre de Juniac speaks during the Global Media Day in Geneva

Overall profit is expected to rise 11% to $38.4bn in 2018, and the outlook is encouraging, IATA said on Tuesday as it raised its 2017 forecast to $34.5bn, up from an earlier $31.4bn estimate, but still lower than 2016. The demand for air cargo is at its strongest level in over a decade.

IATA also expects costs to rise as jet fuel and labor expenditures go up. "While restocking cycles are usually short-lived, the growth of e-commerce is expected to support continued momentum in the cargo business beyond the rate of expansion of world trade in 2018", the association added.

Latin America: Airlines in Latin America are forecast to generate a $900 million net profit in 2018, up from $700 million in 2017.

In its latest forecast, Iata also hoisted its 2017 global profitability forecast for the second time this year.

Worldwide passenger demand, measured in revenue passenger kilometers (RPKs), rose 7.3% in October versus the same period past year, according to IATA's latest data.

Asia-Pacific was the growth leader in October, with passenger traffic growth of 10.3pc. Cargo volume is expected to grow 4.5% y-o-y to 62.5 million tonnes. That part of the world also "remains the only global market not to have grown in annual terms this year". This will push up the average load factor to a record 81.4 per cent, helping to drive a 3 per cent improvement in yields.


In 2017, IATA said airlines hit a new record of over 20,000 city-pair connections, up by 1,351 from 2016. In September, worldwide passenger demand had increased 6.6 percent from the previous month.

While the total number of reported incidents past year actually fell by nearly 10 percent to 9,837, the portion that were deemed a higher risk increased from 2015.

The figures accounts for 190 of the world's airlines so "are likely to significantly underestimate the extent of the problem", IATA's assistant director for external affairs Tim Colehan said in Geneva.

"The focus is really on the pressure from cost (increases)", said Pearce.

Capacity increased 4.5% and load factor rose 1.3 percentage points to 84.9%, highest among regions.

Oil prices are expected to average $60 a barrel for Brent Crude in 2018, up 10.7 per cent from $54.2 per barrel in 2017, according to IATA. While passenger numbers will rise six per cent next year, this year has seen an increase of 7.5 per cent. Revenues from the passenger business are forecast to grow to $581bn, up 9.2 per cent on $532bn expected in 2017, according to Iata.



Other News

Trending Now

Pakistan hasn't changed policy of shielding terrorists: India on Hafiz Saeed release
The Lahore High Court's justice review body rejected a government request to renew his detention for another 90 days Wednesday. He has been deemed as the alleged mastermind of 2008 attacks on the Indian financial hub of Mumbai that killed 166 people.

Deputies seek missing teen for questioning in grandmother's death
The couple later took an Uber back to their Neptune Beach home on Seagate Avenue, where they found it pillaged with several guns missing from the safe.

Manchester United's Romelu Lukaku facing no disciplinary action for Gaetan Bong clash
Manchester United striker Romelu Lukaku must wait to discover if he will be punished for allegedly kicking out at Brighton defender Gaetan Bong .

Football fans happy with Nigeria's group
Coach Gernot Rohr said what last month's win over Argentina has shown is that anything is possible with his young team. It will be interesting to have a good friendly (match), for example, against Serbia because they play similar football.

Brexit border agreement reached between Ireland and UK
Tusk said a breakthrough had come in the talks on the Irish border, as reported to him by Irish Prime Minister Leo Varadkar. She said: "There are a couple of issues, some differences do remain which require further negotiation and consultation".

MEA asks Pakistan to allow Kulbhushan to meet wife along with mother
In April 2017, a Pakistan military court found him guilty of "espionage and sabotage" and sentenced him to death. The demand that an Indian diplomat be allowed as an escort is different from the request for consular access.

Kylie Jenner thankful for her 'little babies'
The reality star first launched her lip kits in November 2015, which consistently sell out shortly after each restock online.

United Nations war crimes defendant claims to have taken poison in court
Croatia's Prime Minister Andrej Plenkovic slammed the "injustice" of the United Nations tribunal and expressed his condolences. While the sentence was being read out, Praljak stood up and said: "Judges, Slobodan Praljak is not a war criminal! ".

Penn State returns to Fiesta Bowl to play Washington
The Fiesta Bowl is an interesting bowl placement for PSU, as they have not played in one since 1997, when they defeated Texas. The Nittany Lions defeated the Huskies in the 1983 Aloha Bowl, 13-10.

India welcomes Ivanka Trump at business summit
The senior White House adviser has always been considered a sort of whisperer when it comes to her powerful father. The gathering, co-hosted by the USA and India, comes as the two countries appear to be working to strengthen ties.