Airlines Are Set to Make Even More Money Off Passengers in 2018

Embed Video Popup VideoInstagram Download Buy

"Airlines are achieving sustainable levels of profitability", de Juniac said.

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

The International Airport Transport Association (IATA) said the expected net profit is more than United States dollars 34.5 billion projected for this year.

This year's profit forecast for the region's airlines has, however, been revised downwards from the $400 million profit IATA forecast in June, which was a 63.6 per cent drop from the $1.1 billion the airlines made in 2016. Mr de Juniac is the former chief executive of Air France-KLM. More cargo is being sent by air as people increasingly buy goods over the Internet - giving a particular lift to Asian exports.

Geneva - Improving economies and robust travel demand will return global airlines to record profit in 2018, with fares also set to rise, the International Air Transport Association (IATA) said.

The International Air Transport Association (IATA) has cautioned governments across the world about privatising airports to fund growth, a statement that assumes significance as India plans to upgrade and build airports through private sector participation.

Worldwide tourists travelling by air are expected to spend more than $750 billion in 2018, a rise of 15% in just over 2 years.

"While economic conditions have shown strong improvement over the past year or so, the upward trend in seasonally-adjusted traffic has slowed considerably since May", the IATA noted. Capacity climbed 9.1%, and load factor slipped 0.3 percentage points to 82.6%.

Overall, IATA is expecting the industry-wide operating margin to squeeze to 8.1% next year from 8.3% in 2017, though it sees net margins rising to 4.7% next year from 4.6% this year. The inventory-to-sales ratio in the U.S. is looking sideways, thereby indicating that the period when companies look to restock inventories quickly-which often gives air cargo a boost-has ended.

According to Iata, the industry has leveraged on this period of positive cash flow to pay out dividends as well as to pare debt, which has brought down interest payments. Chief marketing officer Kenny Jacobs said the increase in passenger numbers in November was due to lower fares.

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.

"Aviation is the business of freedom and a catalyst for growth and development".

He said: "To continue to deliver on our full potential, governments need to raise their game-implementing global standards on security, finding a reasonable level of taxation, delivering smarter regulation and building the cost-efficient infrastructure to accommodate growing demand".

Related News:



Most liked

US Special Counsel Robert Mueller has subpoenaed Donald Trump's Deutsche Bank records
After a string of bankruptcies and broken promises, pretty much every other major bank stopped lending Trump money some years ago. In June, the German bank rejected a demand by Democrats to provide details of the President's finances, citing privacy laws.

Rose Returns To Cavs For Rehab
Derrick Rose has returned to the Cleveland Cavaliers facilities after his self-imposed exile from the team. So far, Rose has missed 16 of the Cavs' 23 games this season, according to ESPN .

Netflix are going ahead with the final season of House of Cards
He added that the agreement would benefit the 2,000 people in Baltimore who have worked on the show. Spacey said after the first allegation that he was "beyond horrified" by Rapp's claim of assault.

McConnell eases stance on Moore, says voters should 'make the call'
The error margin is 3.5 points among the sample of 1,110 registered voters and 4.5 points among the sample of 739 likely voters. Moore has also said he first noticed his wife , who is 14 years his junior, when she was 15 years old.

Donald Trump Endorses Roy Moore, Citing Dem. Obstruction on Tax Reform
Trump's move runs counter to many other Republican leaders who have repudiated Moore and called on him to exit the race. She made her decision after hearing Moore categorically deny knowing any of his accusers, including herself.

Irish foreign minister says Brexit border breakthrough possible today
He added: "The indications we have is that we are in a much better place now than we have been in the negotiations to date". Speaking at a joint press conference in Brussels with Mr Juncker, Mrs May said: "We have been negotiating hard".

Alex Smith hits back-to-back touchdowns to Tyreek Hill
DE Mo Wilkerson and DE Leonard Williams split a sack and LB Jordan Jenkins got one of his own at the end of the second quarter. Less than two minutes later, Smith and Kelce hooked up again for a 36-yard score to build an early two-possession lead.

Federal Bureau of Investigation official removed from probe for anti-Trump remarks
Trump's former advisers, while also coming under criticism for putting many donors to Democratic candidates on his team. Strzok and a colleague reacted to news events, like presidential debates, in ways that could appear critical of Mr.

Iowa fans revel in keeping Ohio State out of College Football Playoff
The Bulldogs are the No. 3 seed and the Crimson Tide the No. 4 seed, with Clemson and Oklahoma taking the top two spots. Unfortunately for them, their lack of a championship will be a factor for them, as well as their lack of big wins.

Running game, stingy defense support fiery Tom Brady in win over Bills
A victory Sunday at New Era Field would put Brady alone atop the ranks with 27 wins against the Bills . But who would have thought that neither of these teams would score a first-half touchdown on Sunday.

McMaster: North Korean threat increasing every day
But he said that Pyongyang's actions had made America's alliances with Japan and South Korea "stronger than ever". And, much to our regret, that they try to pull the Japanese and the South Koreans in the same direction.

Apple releases iOS 11.2 with Apple Pay Cash and a bug fix
Faced with an onslaught of complaints, Apple responded by issuing a step-by-step guide for affected users to solve the issue. On November 28, a root bug was revealed allowing anyone to access a mac running the latest High Sierra operating system.

Shea Patterson given permission to explore transfer from Ole Miss
A 5-year show-cause order for the assistant coach who facilitated standardized test fraud and living arrangements. Ole Miss said it would appeal the NCAA's ruling, specifically siting the 2018 bowl ban as an excessive penalty.

Jimbo Fisher Resigns At Florida State To Take Texas A&M Job
The Aggies went hard after Fisher following the firing of Kevin Sumlin , who went 51-26 in six seasons with the program. According to the Democrat , Fisher will not coach the Seminoles in this weekend's game against Louisiana-Monroe.

United Nations war crimes defendant claims to have taken poison in court
Judge Carmel Agius, who had urged the defendant to sit down, put a halt to the hearing as calls were made for an ambulance. Slobodan Praljak brings a bottle to his lips, during a Yugoslav War Crimes Tribunal in The Hague, Netherlands. .