Global passenger traffic up 7.2pc in Oct: IATA

06 December, 2017, 00:17 | Author: Jason Torres
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Demand for global air freight increased 5.9 percent in October, outpacing the 3.2 percent average growth rate in air freight capacity over the last decade, the International Air Transport Association (IATA) reported on Friday.

Globally, Iata forecasts global industry net profit to rise to $38.4 billion in 2018, an improvement from the $34.5bn expected net profit in 2017, which Iata revised from a $31.4bn forecast in June.

"Safety performance is solid".

"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".

"Airlines are achieving sustainable levels of profitability", he said while highlighting the challenges of rising fuel costs and well as labour and infrastructure expenses.

However, the industry also faces longer-term challenges and many of them are in the hands of governments, he said.

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

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IATA said there "continues to be indications" that inbound USA travel is being deterred by the additional security measures now involved when travelling to the country.

A rise in overall revenues to $824 billion, up 9.4% on 2017 revenues of $754 billion.

Europe's airlines are in second place with an anticipated US$11.5 billion in profit, boosted by economic recovery in their home markets as well as some consolidation in that region. "And the industry is ready to partner with governments to reinforce the foundations for global connectivity that are vital to modern life", said Mr de Juniac. After languishing in the doldrums in recent years, cargo volumes are slated to expand from 59.9 million tonnes this year to 62.5 million tonnes in 2018.

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

In response to the tougher conditions regional carriers have cut costs and unprofitable routes, with Dubai carrier Emirates reporting a 111 per cent increase in profit to $214m in the April 1 to September 30 period after a 75 per cent slump in the first half of its previous fiscal year. Passengers have directly contributed to the growth in profit, as the average net profit per departing passenger is expected to rise to $8.90 (up from $8.45 in 2017).

This was the 15th consecutive month in which demand growth outstripped capacity growth, which is positive for load factors, yields, and financial performance.

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