December 15, 2018
Latest News

Global airline industry 2017 earnings drop 2.3 percent, better 2018 outlook

Geneva, Dec 5 (efe-epa).- The International Air Transport Association said in its end-of-year report on Tuesday that 2017 international airline industry earnings would total $34.5 billion, or 2.3 percent less than last year, but forecast a $38.4 billion profit for 2018, or 11.3 percent more.

IATA's 2017 annual report and 2018 industry forecast said this year's results would be lower than those of 2016, but better than June's appraisal when it put 2017 profits at around $31.4 billion.

“These are good times for the global air transport industry. Safety performance is solid. We have a clear strategy that is delivering results on environmental performance," said Alexandre de Juniac, IATA’sDirector General and CEO.

De Juniac added that "demand for air cargo is at its strongest level in over a decade. Employment is growing. More routes are being opened. Airlines are achieving sustainable levels of profitability," but also warned this was "a tough business, and we are being challenged on the cost front by rising fuel, labor and infrastructure expenses.”

IATA considers that strong demand, efficiency and reduced interest payments could help airlines improve net profitability in 2018, despite rising costs.

The number of air passengers will experience a positive turn, increasing from 3.6 billion passengers in 2016 to 4.1 billion passengers in 2017, with 2018 foreseeing a 6 percent increase to 4.3 billion passengers.

On a per passenger basis, airlines will earn an average of $8.90 compared to $8.45 in 2017, although both figures are worse than last year's $9.26.

As regards to air freight, carried cargo grew to 62.5 million tonnes, up 4.5 percent on the 59.9 million tonnes in 2017.

According to IATA's CEO, the airline industry also faces longer-term challenges: "Aviation is the business of freedom and a catalyst for growth and development," de Juniac said.

"It remains a tough industry and the airlines must still face increased fuel, staff and infrastructure costs," de Juniac said.

Regardless, commercial airlines are expected to take delivery of around 1,683 new aircraft this year, a substantial investment on the part of the industry, though less than forecast in previous reports.

Sustained high fuel costs have made economic sense to retire older aircraft at a higher rate, and around half of this year’s deliveries will replace existing fleets, making a significant contribution to increasing fleet fuel efficiency.

IATA expects 1 percent of world GDP to be spent on air transport in 2018, totaling $861 billion.

cae/mrp

News history
Ecuador's president says 1st priority of governments is the poor

Doha, Dec 15 (efe-epa).- The president of Ecuador defended on Saturday that the first priority of governments is to pay attention to the poor.

Brexit disarray sends shivers through banks

Frankfurt/London, Dec 15 (efe-epa).- Nervous bank executives have been busily jetting in and out of meetings with Europe's top financial regulators in the...

China confirms suspension of tariffs on US vehicles

Shanghai, China, Dec 15 (efe-epa).- China has confirmed it will suspend tariffs on vehicles and auto parts from the United States from Jan. 1, state-run...

Brazil launches first of 5 navy attack submarines

Rio de Janeiro, Dec 14 (efe-epa).- Brazil on Friday launched the first of five navy attack submarines to be built in the South American country under a...

Paraguayan cabbies protest arrival of Uber

Asuncion, Dec 14 (efe-epa).- Hundreds of taxi drivers demonstrated here Friday in front of Paraguay's Palace of Justice in protest against the arrival of...

Zayed Sustainability Prize brings solar energy to rural Bolivia

La Paz, Dec 14 (epa-efe).- A program launched under the auspices of the UAE's Zayed Sustainability Prize is bringing electricity to some 3,000 residents of...

Vast Iberdrola solar park means more clean energy for Mexico

By Marti Quintana

Russia Central Bank raises interest rates in effort to stem risks

Madrid, Dec. 14 (efe-epa).- Russia's central bank raised its key interest rate for the second time in four months in a surprise decision Friday that aims to...

China to suspend additional tariffs on US vehicles

Beijing, Dec 14 (efe-epa).- China will suspend additional tariffs on vehicles and automobile parts made in the United States for three months starting...

OPEC crude basket drops to $58.67

Vienna, Dec 14 (efe-epa).- The basket of crude oil used as a benchmark indicator by the Organization of Petroleum Exporting Countries fell to $58.67, the...

Sterling falls as UK PM makes little progress in EU talks

London, Dec 14 (efe-epa).- Sterling falls after UK Prime Minister Theresa May failed to secure meaningful concessions from European Union leaders for her...

French economy likely slowed in December; PMI data underwhelms

Madrid, Dec 14 (efe-epa).- French economic growth likely ground to a halt in December as businesses reported widespread disruption as a result of weeks of...

Hong Kong stocks close 1.62 percent down

Beijing, Dec 14 (efe-epa).- The Hong Kong stock exchange's benchmark Hang Seng index on Friday fell 1.62 percent, or 429.56 points, to close at 26,094.79...

Australia signs $35-billion contract to build 9 new frigates

Adelaide, Australia, Dec 14 (efe-epa).- The Australian government on Friday signed a $35 billion contract for building nine Hunter Class frigates for its...

Shanghai stock close down 1.53 percent

Shanghai, China, Dec 14 (efe-epa).- The Shanghai Stock Exchange's Composite index closed on Friday with a decline of 1.53 percent, or 40.31 points, to stand...

Seoul stocks close 1.25 percent down

Seoul, Dec 14 (efe-epa).- The Seoul stock exchange's benchmark KOSPI index closed on Friday with a decline of 26.17 points or 1.25 percent to end at 2,069.38.

South Korean president names 16 new vice ministers

Seoul, Dec 14 (efe-epa).- The South Korean president on Friday named 16 new vice ministers, including a new vice minister for finance.

Tokyo stocks close 2.02 percent down

Tokyo, Dec 14 (efe-epa).- The Tokyo Stock Exchange's benchmark Nikkei index on Friday declined 441.36 points, or 2,02 percent, to end at 21,374.83.

China's industrial output growth slows down to 5.4 percent in November

Beijing, Dec 14 (efe-epa).- China's industrial output grew 5.4 percent year-on-year in November, five decimal points below the rate registered in October,...

Japan's business confidence remains stable

Tokyo, Dec 14 (efe-epa) - The confidence of Japan's large manufacturing companies in the performance of the country's economy remained stable in the fourth...

LatAm nations back strengthening energy integration

Montevideo, Dec 13 (efe-epa).- Government ministers from countries belonging to the Latin American Energy Organization (OLADE) on Thursday backed...

Bread is the latest item in short supply in Cuba

Havana, Dec 13 (efe-epa).- Long lines at bakeries, murmured complaints on the street but fiery ones on the social networks and, finally, an official...

Greenpeace protests against Brazil's planned auction of Amazon oil blocks

Rio de Janeiro, Dec 13 (efe-epa).- Greenpeace on Thursday staged an attention-grabbing protest against Brazil's plans to auction off oil blocks in the...

Branson's space-tourism company rockets out of atmosphere for first time

Los Angeles, Dec 13 (efe-epa).- Virgin Galactic, Richard Branson's space-tourism venture, reached the edge of space in a test flight Thursday, four years...

I agree Welcome to news4europe.eu. We use cookies to improve your online experience. Find out more.