The world’s airlines will see a 31% increase in passenger numbers until 2017, according to a new forecast just released by IATA.
The emerging economies of the Middle East and Asia Pacific will see the strongest international passenger growth, followed by Africa and Latin America.
USA will continue to be the largest single market for domestic passengers, followed by China and Brazil.
More European airlines will go bust this year as their collective losses top $1bn (£642m), according to the industry’s global body.
The International Air Transport Association’s bleak forecast, doubling the losses predicted in March, warned that an intensified eurozone crisis and a return to higher fuel costs were real risks that could sink the industry further.
Tony Tyler, the chief executive of Iata, said the state of the industry was “‘fragile'” and that “‘profitability is balancing on a knife-edge'”.
Despite the price of oil dipping below $100 a barrel last week, fuel remained around 33% of airlines’ operating costs, compared with just 13% 10 years ago. “‘It’s our biggest challenge, and one with little predictability.'” Any deteriorating relations with Iran could have a severe impact on aviation, he said.
source: Guardian.co.uk
The International Air Transport Association (IATA) announced a downgrade to its industry outlook for 2012 primarily due to rising oil prices. IATA expects airlines to turn a global profit of $3.0 billion in 2012 for a 0.5% margin. This $500 million downgrade from the December forecast is primarily driven by a rise in the expected average price of oil to $115 per barrel, up from the previously forecast $99. Several factors prevented a more significant downgrade: (1) the avoidance of a significant worsening of the Eurozone crisis, (2) improvement in the US economy, (3) cargo market stabilization and (4) slower than expected capacity expansion.
fuente: eturbonews.com
Global airline passenger traffic rose 5.9 per cent last year despite weak conditions according to the International Air Transport Association.
“‘Given the weak conditions in Western economies the passenger market held up well in 2011,'” IATA said in a statement, describing the year as one of contrasts.
“‘Healthy passenger growth, primarily in the first half of the year, was offset by a declining cargo market,'” it said.
The Geneva-based association, which represents some 240 airlines accounting for 84 per cent of global air traffic, noted that cargo fell 0.7 per cent last year although it picked up 0.2 per cent in December alone.
source: The Economic Times
The International Air Transport Association (IATA) warned of tough times ahead for the airline industry and the head of Thai Airways said on Tuesday financial market turmoil as the European and U.S. economies slow down was “‘frightening'”.
IATA has already warned that a weak global economy would prompt a 29-percent fall in airline profits in 2012 and cut the industry’s profit margins to a wafer thin 0.8 percent from 1.2 percent this year.
IATA, whose 230 members carry more than 93 percent of scheduled international air traffic, forecast global economic growth of 2.4 percent in 2012, lower than the International Monetary Fund’s projection of 4.0 percent.
source: foxbusiness.com
The International Air Transport Association (IATA) has warned that fuel prices could increase and the global aviation industry will face a setback while Japan recovers from the earthquake.
While it is too early to assess the long-term impact of the Japanese tragedy on the global air transport industry, IATA said there would be a major slowdown in Japanese air travel in the short-term. “‘The thoughts and prayers of the air transport industry are with the Japanese people at this most difficult time,'” said Giovanni Bisignani, IATA’s director general and CEO. “‘Japan is an important link in global air transport. The US$62.5 billion Japanese aviation market represents 6.5 percent of worldwide scheduled traffic and 10 percent of the industry’s revenues.'”
source: Travel News
The International Air Transport Association trimmed its forecast for airlines’ net profits this year due to a surge in fuel costs, which is being exacerbated by the political unrest in the Middle East.
IATA, which represents some 230 airlines comprising 93% of scheduled international traffic, said Wednesday that it now expects carriers’ combined 2011 net profit of $8.6 billion, down from a previous forecast of $9.1 billion, on revenues of $594 billion.
The industry earned $16 billion in net profits last year as it rebounded from a withering downturn in the global economy that saw dozens of airlines world-wide go out of business.
source: wsj.com
Industry association IATA on Tuesday raised its forecast for airline earnings in 2010 to a record 15.1 billion dollars, but warned that profits would slide next year.
The forecast profit marked a significant step up from the previous figure of 8.9 billion dollar in earnings expected this year.
Two-thirds of 2010’s expected profits were generated in the second quarter, the International Air Transport Association said.
Growth is largely going to come from fast-growing Asia, which will post more than half of the 2010 profit at 7.7 billion dollars.
source: AFP
