Airlines Forcibly Removing More and More Drunk Passengers From Flights

Lloyd Doyle
December 7, 2017

A Delta Airlines plane takes off from LaGuardia Airport in New York City on August 8, 2016 in New York City.

The forecast, presented by International Air Transport Association (IATA) director general and chief executive Alexandre de Juniac at the industry body's media day in Geneva on Tuesday (European time), represents an improvement from the US$34.5 billion estimated profit for calendar 2017.

According to the forecast by the industry's global trade association, combined net profits will hit USD38.4 billion, from a revised USD34.5 billion in 2017, with United States carriers weighing in with nearly half.

African airlines' traffic grew 7.5 per cent year-on-year in October, up from 3.6 per cent in September. "Stronger economic growth will help in 2018, but Africa's governments need to ensure increased connectivity to stimulate intra-African travel, access to markets and economic growth", IATA said in the statement. It 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).

Overall unit costs were expected to grow by 4.3 per cent in 2018, a significant acceleration on the 1.7 per cent increase in 2017.

"Safety performance is solid. Employment is growing. More routes are being opened". "The region's carriers face challenges to their business models", the IATA reported, adding, "from low oil revenues, regional conflict, crowded air space, the impact of travel restrictions to the USA, and competition the new "super connector" (Turkish Airlines)".

By region, North America is forecast to lead the way on performance with net profits in 2018 of USD16.8 billion, up from USD15.6 billion, followed by Europe rising from USD9.8 to USD11.5 billion.

Meanwhile, IATA said the cargo business was expected to continue to "benefit from a strong cyclical upturn in volumes, with some recovery in yields".

"European airlines are benefiting from a strong economic recovery in home markets, including Russian Federation, a rebound from the terrorism events of 2016, and some consolidation following the failure of several regional airlines", the IATA said. Profits are expected to grow by more than $2 billion in 2018, up to $11.5 billion.

Other reports by Iphone Fresh

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