Published April 30, 2013
The global airline sector profit is expected to grow to US$7.5 Billion in 2013, with Asia Pacific and Middle East-based airlines dominating the international passenger market and leading the way in terms of improved operating margins, says the International Air Transport Association (IATA).
According to IATA, global airline sector profit will grow from US$4.6 Billion in 2009 to a forecast figure of US$7.5 Billion for 2013.
“According to the report, Asia-Pacific will lead world traffic by 2031, with a 32% share, while the Middle East will rise to 11% in 2031 from the current figure of 7%. The future forecasts over the next 20 years for the world GDP growth as per IMF is at 3.2% per annum (CAGR) and based on ICAO forecasts, the number of airline passengers is projected to grow at 4% per annum (CAGR) with airline traffic growth outlined to grow at 5 per cent per annum (CAGR),” says Sunil Malhotra, Ernst & Young’s Director of Aviation Sector in charge of the Middle East and North Africa (MENA) region.
“The last three years have seen the global aviation industry turn a corner despite ongoing market turbulence. While consolidation is the strategy in North America, and European carriers are busy lobbying for an end to excessive taxation and passenger duties, the Middle East and Asia are capitalising on both route network growth opportunities and strong passenger demand,” says Mark Walsh, Portfolio Director, Reed Travel Exhibitions.
Partnership activity is a major focus of the report as Airlines are proactively seeking more meaningful alliances and partnerships to boost their synergies and passenger flows.
According to Malhotra, some Gulf carriers are joining global alliances, while others have entered into strategic code shares to promote traffic flows between continents.
An eTurboNews article