Passenger demand in Middle East picks up in October: IATA report

The bulk of the profit generated next year will come from North America where, according to IATA, airlines in the region are forecast to record a combined net profit of $16.4 billion.

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.

Rising fuel prices have also hit USA airlines, but high demand and improving economies in Europe have helped trigger profit in airlines worldwide, an IATA economist told Reuters. Despite the challenges, the aviation body said there is positive momentum heading into 2018.

The organisation forecast profit would grow to $600m next year from $300m this year on the back of a minor increase in demand.

This was contained in IATA's latest analysis of demand for passenger air transport.

For cargo volume, the strong growth seen in 2017 was due to unexpectedly strong demand that pushed companies to restock inventories quickly, IATA said.

For global traffic, the Asia-Pacific region showed the largest growth in passenger traffic in October, up 10.3% YOY, driven by a solid regional economic backdrop and growing numbers of airport-pairs in operation.

More news: Jimbo Fisher leaving FSU to become head coach at Texas A&M

"Overall unit costs are expected to grow by 4.3 per cent in 2018 [a significant acceleration on the 1.7 per cent increase in 2017]".

Total capacity climbed by six per cent in the worldwide passenger market segment, while load factor increased one percentage point to 79.4 per cent y-o-y, it said. Capacity climbed 9.1%, and load factor slipped 0.3 percentage points to 82.6%. Cargo yields are expected to improve by 4 per cent in 2018, slower than the 5 per cent in 2017.

In 2017, IATA said airlines hit a new record of over 20,000 city-pair connections, up by 1,351 from 2016.

IATA has estimated 2018 airline capacity growth to be 3.4 percent for North America, just shy of the region's forecast traffic growth of 3.5 percent.

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. India and China continued to lead all markets, with double-digit growth rates.

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

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.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

HTC U11 finally tastes Android Oreo's sweetness
Over the air updates typically roll out in stages, so it make take a couple of days for Oreo to hit your unlocked HTC U11 . The HTC U11 Life came with an Android 8.0 version out of the box for all global markets besides the United States market.

Epic's lawsuit against Fortnite cheaters just got more complicated
She takes issue with Epic using her son as a scapegoat, when the company should really be going after the cheat makers. Rogers asked that the court "take into consideration the above-mentioned issues regarding this lawsuit".

Shohei Ohtani won't sign with the Mets
The Yankees, once considered a favorite, were told they didn't make the cut. Dylan Hernandez contributed to the reporting of this article .

Trump accuses CNN of 'representing U.S. poorly'
US President Donald Trump has once again expressed his dissatisfaction with CNN , comparing it unfavorably to Fox News. Donald Trump can't stop getting dunked on by news organizations. "That's yours.

Air crew saw North Korea missile re-enter atmosphere
The BBC reported at least two other Seoul-bound South Korean aircraft traveling from the USA reported witnessing the missile test. A spokesman said on Monday that the flight crew of CX893 had reported a suspected sighting of Pyongyang's latest missile test .

YouTube releases its lightweight version YouTube Go in India
Facebook-owned messaging application WhatsApp has been updating its features to facilitate the users and enhance their experience. YouTube's controversy over violent, predatory videos impersonating as videos for children started about a month ago.

Flu season coming earlier than expected in Ohio
Health experts look to Australia to measure the effectiveness of the vaccine and the severity of the flu headed our way. This year, the onslaught of a particularly deadly strain of the flu virus may lead to a harsher flu season than usual.

GES Summit 2017: Ivanka Trump in India
"We must ensure women entrepreneurs have access to capital, access to networks and mentors, and access to equitable laws". The gathering, co-hosted by the US and India, comes as the two countries appear to be working to strengthen ties.

Mueller investigation cost $6.7 million within first five months
Mueller filed charges against Trump's former campaign manager Paul Manafort and his business partner Rick Gates on October 30. Deutsche Bank is not the only Trump-related business interest that is attracting the attention of investigators.

Garrison Keillor reportedly fired for 'improper behavior'
Minnesota Public Radio, the distributor of A Prairie Home Companion , has reportedly cut ties with Keillor, the show's creator. Eleven years later, a talk show host in L.A., she goes public with her embarrassment, and there is talk of resignation.

Russian Federation condemns North Korean latest missile launch
Also today, Russian lawmakers who visited Pyongyang said North Korea was not prepared to disarm. He called Haley's speech on North Korea , which she made at an emergency U.N.

Unbelievable supermoon photos captured from around the world
Losing its brightness, the Moon will take on a fainter-than-normal glow from the scant sunlight, that will give it a reddish hue. Supermoons usually seem 14 percent larger and 30 percent brighter than the average moon , according to Petro.

Why NC State football coach Dave Doeren chose the Wolfpack over Tennessee
Not only does the Pack have one more game to play, but Doeren still has the prospect of adding to its recruiting class. Public backlash caused Schiano's deal to fall through, while the other three have all rejected Tennessee's offer.

MSNBC trolls Trump with video montage of Obama saying 'Merry Christmas'
LifeSiteNews.com reports that there are also cookies, bows , candles, and other reminders of the holiday season. According to trump, the phrase "Happy holidays" negates the Christian essence of Christmas.

Hands on: Asus NovaGo review
That's the same setup found in many Android phones released in 2017, including Samsung's Galaxy S8 and Google's Pixel 2. There are plenty of Microsoft Surface rivals - or clones if you like - out there and the HP Envy x2 is now another one.


More News

News
More News