Airline industry profits soar 11 percent in 2017

Lucy Hill
December 7, 2017

She highlighted examples such as for the last mile for small parcel deliveries, transporting goods to remote or isolated areas and on routes which are not economically viable for larger aircraft.

In terms of air freight, cargo volumes are similarly expected to rise at a slower pace than this year, down from 9.3 per cent in 2017 to 4.5 per cent in 2018, to reach 62.5 million tonnes.

"To be blunt, we have not seen an airport privatisation that has fully lived up to expectations", said Alexandre de Juniac, director general & CEO at IATA.

However, IATA said it was not concerned there was a pilot shortage after high-profile cancellations at Ryanair and American Airlines due to rostering issues and after some US airlines awarded high pay increases to pilots this year. Capacity grew 6.2 per cent and load factor climbed 0.8 percentage points to 80.8 per cent, which was a record for the month.

"The region's carriers face challenges to their business models, and from low oil revenues, regional conflict, crowded air space, the impact of travel restrictions to the U.S., and competition the new "super connector" [Turkish Airlines]", IATA said.

Man City's Pep Guardiola 'regrets' Nathan Redmond exchange
City host West Ham at 16:00 GMT on Sunday, while Southampton travel to south-coast rivals Bournemouth at 13:30 on the same day. He said: 'I didn't see too many actions to delay the game.


"Demand for air freight grew by 5.9% in October". It now expects profits of US$34.5 billion for this year vis-a-vis the US$31.4 billion announced in June. "It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses".

The data showed Asia-Pacific airlines leading all regions with traffic growth of 10.3% from the comparable period a year earlier, and up from an 8.7% rise in September.

Strong airline profitability is expected to continue in 2018, according to IATA's latest financial forecast. De Juniac also cited potential government interference in aviation practices as a factor in the coming year. "Many of them are in the hands of governments". "Aviation is the business of freedom and a catalyst for growth and development", he said, adding the industry benefits to the economy include 2.7 million direct jobs and support for 3.5% of global economic activity.

October global passenger demand rose 7.3% compared to October 2016, which was an improvement compared to the 6.6% demand increase for September.

Despite the rise in passenger and cargo numbers, the rate of growth for both will be lower in 2018 then 2017, IATA said.

Other reports by TheDailyFarc

Discuss This Article

FOLLOW OUR NEWSPAPER