Airlines Are Set to Make Even More Money Off Passengers in 2018

Airlines Are Set to Make Even More Money Off Passengers in 2018

The International Air Transport Association (IATA) announced global passenger traffic results for October showing that demand (measured in revenue passenger kilometres, or RPKs) rose 7.2% compared to the same month previous year.

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.

The global airline industry's net profit is expected to rise substantially in 2018 due to strong demand, efficiency and reduced interest payments, a global airline association said on Tuesday. 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.

"Safety performance is solid".

"As expected, the recent severe weather in the Americas region had only a temporary impact on the healthy travel demand we have seen this year, and we remain on course for another year of above-trend growth", said de Juniac. "It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses".

Total passenger revenue is forecast to grow to $581 billion, from $532 billion this year as passenger numbers rise to 4.3 billion, from 4.1 billion.

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They, and global cargo, will fly on an extra 1000 aircraft by the end of 2018 as the global fleet expands to over 30,000 aircraft, IATA said.

In line with stronger GDP, the world's airlines are expected to carry 4.3 billion passengers next year, up from a projected 4.1 billion this year.

The group disclosed in Geneva, Switzerland that as a result of the situation, African airlines' traffic grew 7.5 per cent year-on-year in October, up from 3.6 per cent in September. "For Thailand, Indonesia, Myanmar, Cambodia, Laos (and) Malaysia, the airline industry's capacity growth is moderate and we should expect a more favourable earnings outlook for the airlines based in these countries", she said. Average net profit per passenger is also forecast to rise to $8.90, up from $8.45 in 2017.

"The industry also faces longer-term challenges".

"By bringing together people of different backgrounds and cultures to do business, to learn from one another and to solve problems, aviation provides huge value beyond what can be calculated".

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