Global air freight demand up 5.9 percent in October: IATA

Global air freight demand up 5.9 percent in October: IATA

Global air freight demand up 5.9 percent in October: IATA

"Demand for air travel remains strong as we head into the holiday travel season and signs point to the broad-based economic upturn continuing into 2018, which is good news", he added.

"The region's carriers face challenges to their business models, and from low oil revenues, regional conflict, crowded air space, the impact of travel restrictions to the United States, and competition the new "super connector" [Turkish Airlines]", IATA said. Despite the challenges, the aviation body said there is positive momentum heading into 2018.

North American airlines will make $16.4 billion in 2018, according to the IATA forecast, up from this year's projected net profit of $15.6 billion and more than any other region in the world.

Asia-Pacific: Airlines in this region are forecast to see profits of $9 billion in 2018, up from $8.3 billion in 2017. "If (traffic rights) are not negotiated because it is a hard Brexit it will be a disaster for the UK-based carriers because they will not be allowed to land in Europe, which is a small problem", Alexandre de Juniac told reporters in Geneva on Tuesday, although said he didn't think it would come to that. That part of the world also "remains the only worldwide market not to have grown in annual terms this year".

IATA said the global air passenger performance in October was helped by a lack of weather-related impacts. "More people than ever are traveling". "However, given increases in airline input costs, and by contrast to the situation in recent years, we are unlikely to see a boost from to demand from lower airfares", Oxley said.

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"2018 is expected to be the fourth consecutive year of sustainable profits with a return on invested capital (9.4 per cent) exceeding the industry's average cost of capital (7.4 per cent)", IATA said in its "State of the Industry and Global Economic Outlook" report. "And we will see record load factors in 2018. something like 81.4 per cent".

In terms of average net profit per departing passenger, global airlines are expecting to see a higher US$8.90 compared with US$8.45 in 2017.

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

Outbound global traffic continues to uphold growth movement in the sector, but inbound traffic to North America is reportedly being deterred by additional security measures inherent with traveling to the US, IATA noted. As a result, net margin will edge up from 4.6 per cent in 2017 to 4.7 per cent in 2018 despite operating margins being squeezed by increasing costs.

"Aviation is the business of freedom and a catalyst for growth and development".

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