Air transport, La Iata: «In 2018 record profits for airlines»
Next year profit will increase by 11% to 38.4 billion, while revenues will increase by 9.4% to 824 billion. Nearly half of the expected profits next year will be generated by North American carriers
Global sales of $ 824 billion, record high net profit (€ 38.4 billion) and historic passenger numbers (€ 4.3 billion). However, at the same time, a gain for travelers of only $ 8.9. 2018 will be another positive year for aviation, with IATA, the largest airline association, “but with a profit that is ten billion dollars lower than Apple’s,” commented number one Alexandre de Juniac, underlining the low margins, even if increased compared to the previous twelve months.
According to Iata, the profit will increase from 34.5 billion this year to 38.4 for 2018 (+ 11%). Revenues also grew (from 754 to 824 billion, + 9.4%). But the differences between the macro areas are remarkable. “Nearly half of the expected profits next year, amounting to 16.4 billion, will be generated by North American carriers,” calculates Brian Pearce, chief economist at IATA. This will result in just under 17 dollars from each passenger. The second most profitable market will be the European one with 11.5 billion overall and 10 dollars per traveler. After a complicated 2017, the Middle Eastern societies should record 600 million profits, 2.65 dollars from each person who embarks. It will stop the average cost of tickets (round trip), at 355 dollars, but in areas like Europe it will be more expensive to move. “We do not think because of the consolidation process in the sector under way in the Old Continent, but because the costs incurred will be greater, starting from those for fuel”, explains the economist Pearce to Corriere. “Not to mention the lack of implementation of the single European sky (Single European Sky) – recalls de Juniac – which will cost the companies another 3.1 billion euros”.
Corriere della Sera Source, Economy
Leonard Berberi
