Global airlines' profits may gain modestly as optimism rises
Source: Agencies |
March 21, 2013, Thursday
|
Print Edition
Print Edition
THE global airline industry has forecast a modest improvement in global net profits for 2013, crediting a backdrop of rising optimism about the world's economy - particularly in the United States and Europe.
The International Air Transport Association, whose 240 member airlines carry 84 percent of all passengers and cargo, upgraded its financial outlook yesterday to likely profits of US$10.6 billion this year, mainly based on more passengers and cargo.
IATA said the industry's overall revenue this year may rise to US$671 billion from US$637 billion last year, while costs will rise to US$649 billion from US$623 billion.
In December, the Geneva-based global trade group had forecast global net profits of US$8.4 billion in 2013, led by a recovery in US airlines mainly from cost cuts and restructuring addressing weak economic growth. That forecast had anticipated that expected overall revenue would rise to US$659 billion and costs would go up to US$640 billion this year.
Asia-Pacific airlines may deliver the biggest contribution to the overall picture, with US$4.2 billion in net profits forecast for this year, followed by North American airlines contributing an expected US$3.6 billion in net earnings.
That is a reversal from December, when IATA said it expected North American airlines to do best in 2013 with a combined net profit of US$3.4 billion, ahead of the US$3.2 billion forecast for Asia Pacific airlines.
Tony Tyler, chief executive of IATA, said in Geneva that airlines' financial performance is made all the more difficult by high fuel costs, with jet fuel seen to rise to US$130 per barrel on average for 2013 - up from the US$124 per barrel this year the group said it expected in December.
"What I think is very significant is that airlines are making any money at all in these difficult trading conditions, let alone increasing profit expectations," he said.
Tyler cited rising demand for cargo hauled during the first quarter, and better-than-expected sales of passenger tickets. Also helping airlines' efficiency and profitability, he said, was cost-cutting from consolidation and collaboration on long-haul routes.
Carriers in Europe and Africa are among the worst off, IATA said, but may do a better than break even in 2013.
Europe's airlines are set to post US$800 million in net profit, up from US$300 million last year, while Africa's airlines are seen as posting a US$200 million net profit this year, a turnaround from a US$100 million loss in 2012.
Tyler said continued turmoil in the eurozone poses "a very significant risk" to airlines' profitability.
"The forecast is based on a stable, if weak, eurozone economy and slow but steady economic growth in the US," he said.
The International Air Transport Association, whose 240 member airlines carry 84 percent of all passengers and cargo, upgraded its financial outlook yesterday to likely profits of US$10.6 billion this year, mainly based on more passengers and cargo.
IATA said the industry's overall revenue this year may rise to US$671 billion from US$637 billion last year, while costs will rise to US$649 billion from US$623 billion.
In December, the Geneva-based global trade group had forecast global net profits of US$8.4 billion in 2013, led by a recovery in US airlines mainly from cost cuts and restructuring addressing weak economic growth. That forecast had anticipated that expected overall revenue would rise to US$659 billion and costs would go up to US$640 billion this year.
Asia-Pacific airlines may deliver the biggest contribution to the overall picture, with US$4.2 billion in net profits forecast for this year, followed by North American airlines contributing an expected US$3.6 billion in net earnings.
That is a reversal from December, when IATA said it expected North American airlines to do best in 2013 with a combined net profit of US$3.4 billion, ahead of the US$3.2 billion forecast for Asia Pacific airlines.
Tony Tyler, chief executive of IATA, said in Geneva that airlines' financial performance is made all the more difficult by high fuel costs, with jet fuel seen to rise to US$130 per barrel on average for 2013 - up from the US$124 per barrel this year the group said it expected in December.
"What I think is very significant is that airlines are making any money at all in these difficult trading conditions, let alone increasing profit expectations," he said.
Tyler cited rising demand for cargo hauled during the first quarter, and better-than-expected sales of passenger tickets. Also helping airlines' efficiency and profitability, he said, was cost-cutting from consolidation and collaboration on long-haul routes.
Carriers in Europe and Africa are among the worst off, IATA said, but may do a better than break even in 2013.
Europe's airlines are set to post US$800 million in net profit, up from US$300 million last year, while Africa's airlines are seen as posting a US$200 million net profit this year, a turnaround from a US$100 million loss in 2012.
Tyler said continued turmoil in the eurozone poses "a very significant risk" to airlines' profitability.
"The forecast is based on a stable, if weak, eurozone economy and slow but steady economic growth in the US," he said.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
