Middle East carriers are expected to turn in a profit of $700 million in 2012, up from the $300 million previously forecast, according to the latest industry forecast for the year released by aviation trade body IATA (International Air Transport Association).
Announcing an upward revision to the profit outlook for world’s airlines, the aviation watchdog said that it now expects the global airline industry to make a net profit of $4.1 billion this year, up from an earlier [June] forecast of $3 billion but still less than half the $8.4 billion achieved in 2011.
“Middle East airlines have seen a major improvement in their prospects for the year. They have been very competitive in both cargo and passenger markets. In addition to growing their long-haul business with increasing market share on routes connecting via the Gulf hubs, they have taken the majority of what little growth there has been in the cargo market this year,” said Tony Tyler, IATA’s Director General and CEO.
The region, according to IATA, has shown the strongest passenger traffic growth with a 17.1 per cent increase in demand outstripping a 13.2 per cent increase in capacity, while the cargo capacity has expanded by 13 per cent as demand increased by 14 per cent.
Further, in its first forecast for 2013, IATA said it sees global profits rising modestly to $7.5 billion, boosted by passenger traffic expansion, even as net margins will remain thin at just 1.1 per cent.