IATA Releases October Passenger Traffic

IATA Releases October Passenger Traffic

Moneycontrol News India's domestic air traffic beat China's growth by double, according to data from the International Air Transport Association (IATA) on Monday.

"These are good times for the global air transport industry".

Airlines and cargo companies also see opportunities from commercial drones, Celine Hourcade, head of cargo transformation at IATA said.

The Middle Eastern carriers are poised to double profits to US$600 million next year due to a 7 per cent growth in demand and a scaling back of capacity injection.

Globally, passenger traffic demand rose 7.2 percent compared to the same month past year, while capacity grew 6.2 percent and load factor climbed 0.8 percentage points to 80.8 percent.

All regions are expected to post improved profits year-on-year in 2018 with the North American carriers leading the pack at US$16.4 billion, which is almost half of the collective bottom line.

The report further states that airlines from India have ordered 800 planes, and are looking to add a combined 350-400 aircraft the coming five years. 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).

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The forecast growth rates are slower than the 7.5% y-o-y seen in 2017 for passengers and the 9.3% cargo volume growth expected this year.

IATA has estimated 2018 airline capacity growth to be 3.4 percent for North America, just shy of the region's forecast traffic growth of 3.5 percent.

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

Strong demand, efficiency and reduced interest payments would help airlines improve net profitability in 2018 despite rising costs.

"The industry also faces longer-term challenges". De Juniac urged governments to "raise their game" and do more to ensure infrastructure can cope with higher aviation demand.

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.

"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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