IATA says Middle East airline net profit will double in 2018

IATA says Middle East airline net profit will double in 2018

IATA says Middle East airline net profit will double in 2018

"And the industry is ready to partner with governments to reinforce the foundations for global connectivity that are vital to modern life".

Though a rise in the total number of passengers is expected - jumping from 4.1 billion in 2017 to 4.3 billion - the growth in this rise has decreased.

"We are eight years into this air travel cycle, but we see no reason at present to expect that cyclical pattern to repeat itself", IATA Chief Economist Brian Pearce said, with reference to a trend that would usually indicate a major downturn was due. "Despite the challenges, there is positive momentum heading into 2018", said Iata, whose 280 members account for more than three quarters of global air traffic.

The forecast growth rates are slower than the 7.5% y-o-y seen in 2017 for passengers and the 9.3% cargo volume growth expected this year. Passenger traffic (revenue passenger kilometers or RPKs) is expected to rise 6.0 per cent (slightly down on the 7.5 per cent growth of 2017 but still ahead of the average of the past 10-20 years of 5.5 per cent), which will exceed a capacity expansion (available seat kilometers or ASKs) of 5.7 per cent.

"Demand for air freight grew by 5.9% in October".

Airlines are on course to increase profits again in 2018, a major industry body has said.

"Employment is growing. More routes are being opened".

"Demand for air travel remains strong as we head into the holiday travel season, and signs point to the broad-based economic upturn continuing into 2018, which is good news for demand for air travel".

"It is still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", he said. "Governments are not meeting their responsibility to provide sufficient infrastructure for the industry to meet demand", de Juniac said.

"By bringing together people of different backgrounds and cultures to do business, to learn from one another and to solve problems, aviation provides huge value beyond what can be calculated".

All regions are expected to post improved profits year-on-year in 2018 with the North American carriers leading the pack at US$16.4 billion, which is almost half of the collective bottom line.

October worldwide passenger demand rose 7.3% compared to October 2016, which was an improvement compared to the 6.6% demand increase for September.

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