Airlines profits slump threatens

Rising costs, declining freight volumes and lower growth rates in passenger transport: the aviation industry this year threatens a decline in profit, to warn the Association of representatives of the IATA. But there is also a view.

the world air travel Association IATA Was assumed to be six months of increasing profits, he anticipates in its latest forecast, with a decline in industry-wide. "The business environment for the Airlines costs due to rising fuel costs and a slowdown in world trade worsened," said IATA CEO Alexandre de Juniac in his 75. General Assembly.

So the air cargo traffic is not expected to grow this year at all, said the IATA chief economist, Brian Pearce. When you travel, the Airlines can expect an increase of five percent. This is significantly less than the Trend of the past few years.

In all of the areas under pressure

in 2018, the passenger demand has been driven according to the figures from the emerging countries, above all India, with growth of 18.9 per cent and followed by China with 12.1 percent.

this year is expected to decrease the profit of the industry at 28 billion dollars, two billion less than 2018. In December, the Association had expected an increase to 35.5 billion dollars. Thus, the aviation industry will have the tenth year in a row profits, but the Association of the device also by the growing demands for a reduction in emissions under increasing pressure from rising costs "in all areas, including labor, fuel, and infrastructure". These development pressures profit margins.

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Boeing's 737 Max rising fuel prices

uncertainty makes the Association also believes that the decommissioning of Boeing 737 Max aircraft, and no one dares to forecast whether the American FAA FAA will give in this year the machines have a start permission. The biggest burden for the Airlines is the rising price of Oil, however. For kerosene, the IATA will have to expect-members with total spending from 206 billion dollars - 15 percent more than in 2018, and a whopping 38 percent more than in 2017.

the development of the passenger

As a major risk for the air transport industry figures to 2036, the trade disputes will also apply. "The slowdown of world trade is expected to continue because of the trade conflict between the United States and China intensified," it said. The impact to first of all, in the air cargo business, but also the air rice transport should be harmless of them.

Better

prepared than in the past, However, the industry is facing according to IATA, better against the effects of commercial crises than in the past. "The good news is, the Airlines have a the Boom-and-Bust cycle broken," said Director General de Juniac. A decline in trade will not be carried away by the air transport industry at the same time, in a deep crisis, the Frenchman is confident.

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