admin
The International Air Transport Association (IATA) has said it had revised up its 2016 profit outlook for the global air transport industry, to $39,4 billion from $35,3 billion last year. IATA represents some 260 airlines accounting for 83 percent of global air traffic. In its financial outlook, 2016 is expected to be the fifth consecutive year of improving aggregate industry profits.Revenues are expected at $709 billion, and net profit margin of 5,6 percent.
In 2015, airlines generated a global total profit of $35,3 billion. Passenger demand was robust last year, and this year it is expected to grow by 6,2 percent to reach 3,8 billion.
The passenger business is this year projected to generate $511 billion in revenues, accounting for the bulk of total revenue, but down from $518 billion recorded last year.
Airline capacity is, on the other hand, expected to grow slightly ahead of demand at 6,8 percent. African airlines capacity growth at 5,3 percent was anticipated to outpace demand growth of 4,5 percent.
In the outlook, over half of the industry profits will be generated in North America at $22,9 billion while African carriers are forecast to incur a combined loss of $500 million.
“It will be a slight improvement on the $700 million that the region’s carriers lost last year,” Tony Tyler, IATA’s Director General and chief executive, said.
Tyler said carriers in Africa faced a “plethora” of challenges including intense competition on long-haul routes, political barriers, high costs and infrastructure deficiencies.
“In addition many major economies (in Africa) have been hit hard by the collapse of commodity prices…”
“Unresolved foreign exchange crises are adding to the economic difficulties facing airlines in this region,” he said.— New Ziana
Online Reporter