English Arabic Armenian Azerbaijani Chinese (Simplified) Chinese (Traditional) Czech Danish Dutch Estonian Filipino Finnish French Galician Georgian German Greek Hindi Hungarian Icelandic Indonesian Italian Japanese Korean Latvian Lithuanian Malay Maltese Norwegian Persian Polish Portuguese Russian Slovak Slovenian Spanish Swedish Thai Turkish Ukrainian Vietnamese

Over half IATA profits now from North America

MIAMI: IATA is forecasting a collective net profit of US$29.3 billion in 2015 for its members compared to US$16.4 billion last year.

The association says the increase reflects stronger global economic prospects, record load factors, lower fuel prices and a major appreciation of the US$.

Over 50 percent of the total (US$15.7 billion) is expected to come from North America carriers that IATA says have benefitted the most from the fall in US$-denominated fuel prices, a strong local economy and industry consolidation.

delta emiratesBy comparison, Middle East carriers will earn an expected net profit of US$1.8 billion this year; European airlines, US$5.8 billion; Asia Pacific carriers US$5.1 billion and airlines based in Latin America, US$600 million. African carriers are forecast to post a collective net profit of US$100 million.

However IATA CEO Tony Tyler warned: "Let's keep things in perspective. Apple, a single company, earned US$13.6 billion in the second quarter of this year (on revenue of US$58 billion). That's just under half the expected full-year profit of the entire airline industry. We don't begrudge anyone their business success. But it is important for our stakeholders, particularly governments, to understand that the business of providing global connectivity is still a very tough one."

One ongoing example that Tyler described as "untenable" is the Venezuelan government's continuing refusal to allow the repatriation of US$3.7 billion to airlines that have sold tickets in the country but have yet to be paid.

"In Latin America, aviation supports over 4.9 million jobs and generates US$153 billion in economic activity. Air connectivity in Venezuela has suffered because of the lack of progress over the blocked funds issue and the deterioration in the operating environment," he declared.

IATA says it expects a 5.5 percent increase in air cargo revenue to US$62 billion by the end of 2015 – down slightly from a 5.8 percent rise last year. Yields are expected to fall 7.0 overall - exaggerated by the strength of the US$ - and longer-term industry prospects "remain challenging with a continuing post-financial crisis trend of slower trade growth relative to GDP".

News

Written on 21/11/2017, 21:21
singapore-signs-smart-logistics-mou-with-south-koreaSINGAPORE: November 21, 2017. Government enterprise agency IE Singapore has signed an MoU with South Korea's Gyeonggi province to collaborate in...
Written on 17/11/2017, 21:43
decathlon-takes-to-the-railsDOURGES, France: November 16, 2017. Maersk Line and Damco, subsidiaries of A.P. Møller – Mærsk, have completed their first block train from Wuhan, China...
Written on 16/11/2017, 18:06
mia-director-resignsMIAMI: November 14, 2017. Miami-Dade County Aviation Department director and CEO Emilio González, the driving force behind much of Miami International...
Written on 14/11/2017, 20:26
truck-manufacturers-face-class-action-lawsuitLONDON: November 14, 2017. UK law firm Collyer Bristow has established a £100 million class action for truck operators that may have been overcharged by...
Written on 14/11/2017, 17:03
finland-opens-new-rail-route-to-chinaKOUVOLA, Finland. November 12, 2017. A new weekly rail service between Northern Europe and China launched on November 10 as the first train with 41...
Written on 10/11/2017, 20:10
imd-acknowledges-family-business-excellenceGRAN CANARIA, Canary Islands: November 10, 2017. Swiss business school IMD has recognized global brand management company Pentland Group with its 22nd...
Written on 08/11/2017, 22:02
how-much-carbon-risk-in-us-355-billionLONDON: November 08, 2017. The Carbon War Room (CWR), founded in 2009 by Richard Branson and others to advance the low carbon economy, is calling for the...
Written on 07/11/2017, 19:59
costa-rica-signs-biofuel-deal-with-klmAMSTERDAM: November 07, 2017. As delegates to the 2017 UN Climate Change Conference (COP 23) meet in Bonn this week, KLM and the government of Costa Rica...
Written on 06/11/2017, 02:27
qatar-airways-takes-cathay-pacific-stakeHONG KONG/DOHA: November 06, 2017. Qatar Airways is buying 9.6 percent of Cathay Pacific Airways (CX) for HK$5.16 billion (US$661 million). The shares...
Written on 03/11/2017, 15:09
slower-airfreight-growth-in-2018-says-iataGENEVA: November 01, 2017. IATA reports a 9.2 percent increase in flown freight in September 2017 compared to the same month last year as capacity rose...
Written on 01/11/2017, 19:42
heathrow-misery-must-end-say-forwardersLONDON: November 01, 2017. The head of the UK's freight forwarder association says his members "want action, not words" to resolve congestion at...
Written on 30/10/2017, 21:03
china-s-one-belt-one-road-gets-new-rail-linkBAKU, Azerbaijan: October 30, 2017. The Baku-Tbilisi-Kars (BTK) railway connecting Azerbaijan, Georgia and Turkey has opened following the completion of a...
Written on 29/10/2017, 19:47
dp-world-to-support-us-500-billion-saudi-projectRIYADH, Saudia Arabia: October 26, 2017. Speaking at the Future Investment Initiative this week, DP World chairman and CEO Sultan Ahmed Bin Sulayem...
Written on 27/10/2017, 20:40
deutsche-post-dhl-delivers-unity-symbol-ahead-of-climate-conferenceBONN: October 26, 2017. As the official logistics partner for the UN Climate Change Conference (COP23) in Bonn next month, Deutsche Post DHL has shipped a...
Written on 26/10/2017, 19:41
change-of-chairs-at-tiacaMIAMI: October 26, 2017. The Board of the International Air Cargo Association has appointed Jan de Rijk Logistics CEO Sebastiaan Scholte its new chairman...
Written on 26/10/2017, 16:06
amazon-to-launch-keyless-home-deliverySEATTLE: October 25, 2017. Amazon will launch its 'Amazon Key' home delivery service for Prime members in 37 U.S. cities on November 08 at a one-time cost...
Written on 25/10/2017, 20:52
delta-introduces-a350-capacity-as-pharma-growth-continuesATLANTA: October 25, 2017. Delta Air Lines is to launch its A350-900 aircraft on flights from Detroit to Tokyo-Narita on October 30 followed by services...
Written on 20/10/2017, 20:31
cma-cgm-members-add-intra-asia-capacitySINGAPORE: October 20, 2017. CMA CGM Group subsidiaries APL and Cheng Lie Navigation (CNC) have launched a new Korea China Straits (KCS) box service...
Written on 19/10/2017, 21:13
britain-requires-new-aviation-strategy-with-or-without-brexitLONDON: October 18, 2017. The Manchester Airports Group (MAG), owner of Manchester, London Stansted and the airfreight-focused East Midlands Airport, has...
Written on 18/10/2017, 20:06
airlines-increase-support-for-endangered-speciesDOHA: October 18, 2017. Qatar Airways has joined Airlines for America, Delta, Emirates, IATA, Kenya Airways and United in the USAID Reducing Opportunities...

- powered by Quickchilli.com -