$ 800 million profits for Middle Eastern airlines in 2019

 

The International Air Transport Association (IATA) expects global airline profits to rise to 35.5 billion dollars this year compared with 32.3 billion dollars last year. The IATA estimates that all regions of the world will make profits in 2019 with different rates except Africa.

North American airlines will continue to outperform all regions of the world, accounting for nearly half of the airline´s total profit. The sector´s financial performance is expected to improve compared to last year in all regions except Europe, where improvements are due to higher fuel hedging.

As far as middle eastern airlines are concerned, profits are expected to rise to $ 800 million in 2019, compared to a weak $ 600 million achieved last year as the region faced some challenges due to the effects of low oil revenues, existing conflicts and competition from "super tankers" Which has led to a sharp slowdown in the region´s growth capacity. The region registered a growth of 4.7% in 2018 and is expected to slow this growth to 4.1% in 2019, which will contribute to the reconstruction and restructuring.

African airlines are expected to record the weakest financial performance with a net loss of $ 300 million in the coming year, slightly better than the net loss of $ 400 million in 2018, making Africa the weakest region in terms of performs marking no change since the last past four years .

Although the region is improving, this development is taking place at a slow pace and the loss rate is expected to diminish as fuel prices fall. Though some of the region´s categories benefit from higher than average revenues and lower operating costs, few airlines in the region are able to make profits.

 


 

 

 

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