October air traffic increases 7.2 percent

Chelsea West
December 7, 2017

In terms of air freight, cargo volumes are similarly expected to rise at a slower pace than this year, down from 9.3 per cent in 2017 to 4.5 per cent in 2018, to reach 62.5 million tonnes.

With global profitability now on a more sustainable footing, IATA said airlines' main focus was on keeping costs under control, with rising fuel prices and labour costs set to weigh.

This was contained in IATA's latest analysis of demand for passenger air transport.

Strong demand, efficiency and reduced interest payments will help airlines improve net profitability in 2018 despite rising costs, de Juniac said.

Passenger numbers are expected to increase to 4.3 billion in 2018.

North American airlines are once again primed to record the highest profits in the industry.

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"Demand for air freight grew by 5.9% in October".

"Employment is growing. More routes are being opened".

In the Asia-Pacific region, including India, airlines are expected to register profits of $9 billion in 2018, which would be marginally higher than $ 8.3 billion projected for this year. Average net profit per passenger is also forecast to rise to $8.90, up from $8.45 in 2017. "It's still, however, a tough business and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", he told a media briefing here yesterday. "Governments are not meeting their responsibility to provide sufficient infrastructure for the industry to meet demand", de Juniac said.

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

"On the other hand, the airline capacity growth in the other Asean markets is more aggressive, namely Singapore, Vietnam, the Philippines and Brunei". Turning to environmental concerns, IATA, which said the inflation-adjusted cost of flying had halved for consumers since 1996, said aviation was committed to managing its carbon footprint with a near-term goal of capping emissions through carbon-neutral growth from 2020.

He said the aviation industry benefits to the economy include 2.7 million direct jobs and support for 3.5 per cent of global economic activity. It is also an announcement of global passenger traffic results for October showing that demand (measured in revenue passenger kilometres or RPKs) rose 7.2 per cent, compared to the same month a year ago.

Other reports by TheSundaySentinel

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