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Corrected: Airline industry set for record profit in 2018 - IATA

Corrected: Airline industry set for record profit in 2018 - IATA

"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", said De Juniac.

"Airlines with low levels of hedging (in the U.S. and China for example) are likely to feel the impact of this increase more immediately than those with higher average hedging ratios (Europe)".

The industry will see net profits rising 11.3 per cent to $38.4 billion (Dh141.04 billion) in 2018, marking slight improvement from the $34.5 billion it will make this year (revised up from the $31.4 billion forecast in June). The demand for air cargo is at its strongest level in over a decade. Cargo volume is expected to grow 4.5% y-o-y to 62.5 million tonnes.

"Asia-Pacific is leading the way in terms of growth and is clearly the centre of gravity in terms of where the industry is going", said IATA chief economist Brian Pearce, adding that a bigger market size, however, may not necessarily correlate to better profitability.

For the first time, more than four billion passengers will be travelling this year, according to the aviation watchdog, and that number is expected to go up to 4.3 billion next year.

Lionel Messi's statue in Argentina has been vandalized again!
The statue is located on a riverside promenade known as the Walkway of Glory in the Buenos Aires port district of Puerto Madero. For one thing, Messi's move helped turned him into the best player in the world.

Besides, IATA expects the value of global trade shipped by air next year to be United States dollars 6.2 trillion while tourists travelling by air in 2018 are anticipated to spend USD 776 billion.

"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.

"If (traffic rights) are not negotiated because it is a hard Brexit it will be a disaster for the UK-based carriers because they will not be allowed to land in Europe, which is a small problem", Alexandre de Juniac told reporters in Geneva on Tuesday, although said he didn't think it would come to that. "The fuel bill is expected to be 20.5% of total costs in 2018, up from 18.8% in 2017", he explained.

Global travel grew 7.3 percent, capacity grew 6 percent, and load factor increased 1 percent.

"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", said Pearce. We have a clear strategy that is delivering results on environmental performance.


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