Quotes: US MENA   Enter Symbol: NewsLetter: Search: advanced

Middle East airlines' profit to hit $2.4 billion  Join our daily free Newsletter

MENAFN - Khaleej Times - 14/12/2013
No. of Ratings : 0
Add to Mixx!



(MENAFN - Khaleej Times) The International Air Transport Association, or Iata, raised 2013 global airlines' profit forecast to 12.9 billion on the back of falling oil prices, growing trend of alliances and mergers, and said Middle East carriers are expected to post a net profit of 1.6 billion in 2013.

The Montreal-based organisation, in an upward revision, projected that the Middle East carriers would further increase their profits to 2.4 billion in 2014. Iata's earlier profit forecast was 2.1 billion for the Middle East and 11.7 billion for the global industry.

The global airline body observed that the region's hubs, particularly in the Gulf, continue to expand in support of growing long-haul connectivity.

"Strong oil revenues - as oil prices stay high - continue to support travel generated by domestic activity and the development of the tourist industry in the Gulf," Iata said.

In a statement, Iata said for 2013 airlines are expected to return a global net profit of 12.9 billion. This is expected to improve to a net profit of 19.7 billion in 2014.

The latest profit forecast is in the wake of Iata's upbeat outlook for global passenger growth to 3.91 billion by 2017.

The UAE is projected to add 29.2 million passengers over the next four years at a compound annual growth rate of 6.6 per cent as the Middle East will report the strongest international passenger growth with a 6.3 per cent CAGR.

The latest profit forecasts are improvements on the September forecast which anticipated an industry net profit of 11.7 billion in 2013 increasing to 16.4 billion in 2014. "The upward revision reflects lower jet fuel prices over the forecast period as well as improvements to the industry's structure and efficiency already visible in quarterly results this year," Iata said.

"Passenger markets continue to outperform the cargo business which remains stagnant both on volumes and revenues. Iata expects 2014 to be a second consecutive year of strengthening profitability (beginning from 2012 when airlines posted a net profit of 7.4 billion). Industry net profit margins, however, remain weak at 1.1 per cent of revenues in 2012, 1.8 per cent in 2013 and 2.6 per cent in 2014," it said.

The anticipated 19.7 billion profit in 2014 would come on projected revenues of 743 billion. While this would be the largest absolute profit for the airline industry - outstripping the 19.2 billion net profit that the industry returned in 2010 - it is important to note that 2010 revenues were 579 billion. The net profit margin in 2010 was 3.3 per cent, some 0.7 percentage points higher than the 2.6 per cent expected for 2014.

"Overall, the industry's fortunes are moving in the right direction. Jet fuel prices remain high, but below their 2012 peak. Passenger demand is expanding in the five-six per cent range - in line with the historical trend," said Tony Tyler, Iata's director-general and CEO.

He said efficiencies gained through mergers and joint ventures are delivering value to both passengers and shareholders. And product innovations are growing ancillary revenues. "Some airlines will out-perform our estimates and others will under-perform. But, on average, airlines will only make a net profit of about 5.94 per passenger in 2014," said Tyler.

Passenger demand is robust and passenger numbers are expected to reach 3.1 billion in 2013 and rise by six per cent to 3.3 billion in 2014. Airlines

 


Khaleej Times




  MENA News Headlines
 Nov 1 2014 - Kerry to meet chief Palestinian negotiatorThe Peninsula
(MENAFN - The Peninsula) Secretary of State John Kerry will on Monday meet in Washington with the chief Palestinian negotiator, Saeb Erakat, for talks on the peace process, a US official said.Kerry ...

 Nov 1 2014 - Palestine- Clashes in West Bank after Friday prayersThe Peninsula
(MENAFN - The Peninsula) Clashes erupted in the West Bank yesterday after weekly Muslim prayers while security forces deployed heavily around Jerusalem's flashpoint Al Aqsa mosque which reopened ...

 Nov 1 2014 - Qatar- Jewellery shops see brisk sales as gold prices fallThe Peninsula
(MENAFN - The Peninsula) Gold prices fell marginally yesterday with some jewellery stores reporting brisk sales. Pure, or 24-carat gold rate slid to QR147 per gramme from QR150 the previous evening. ...

 Nov 1 2014 - Qatar- ARC '14 sees 13pc rise in scientific abstractsThe Peninsula
(MENAFN - The Peninsula) Qatar Foundation's Annual Research Conference (ARC '14) has seen a record 13 percent increase in scientific abstract submissions. The two-day conference on November 18-19 at ...

 Nov 1 2014 - Qatar- WISH to host Universal Health Coverage forumThe Peninsula
(MENAFN - The Peninsula) The World Innovation Summit for Health (WISH), a global initiative of Qatar Foundation (QF), in its 2015 summit will host a forum on Universal Health Coverage (UHC).Sir David ...

 Nov 1 2014 - Qatar- Jazz festival ends tonightThe Peninsula
(MENAFN - The Peninsula) The first Katara European Jazz Festival draws the curtain tonight with a performance by Mario Rom's Interzone, a band of three of Austria's most promising young musicians.It ...

 Oct 31 2014 - Saudi Arabia's Sedco Capital eyes $300m Europe real estate dealThe Peninsula
(MENAFN - The Peninsula)  Jeddah-based Islamic investment firm Sedco Capital plans to arrange a club investment of up to $300 million in European real estate, and will soon distribute its Luxembourg ...

 Oct 31 2014 - Qatar Exchange index falls on heavy sell-offThe Peninsula
(MENAFN - The Peninsula)  Qatari stocks plunged on heavy profit-taking yesterday, a day after Federal Reserve announced its decision to wound up its over five-year-long quantitative easing stimulus ...

 Oct 31 2014 - Kuwait prioritizes protection of human rights - EnvoyKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA))  The State of Kuwait on Thursday reaffirmed respect for human rights out of belief in their crucial role in the achievement of sustainable development.The Kuwaiti ...

 Oct 31 2014 - Kuwait welcomes Sweden's recognition of Palestinian statehoodKuwait News Agency (KUNA)
(MENAFN - Kuwait News Agency (KUNA))  Kuwait welcomes Sweden's decision to recognize Palestine as an independent state, a senior Foreign Ministry source said on Thursday.The decision comes in line ...

more...


 






Google

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

IPO News
Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

US Markets Details

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Investment Game
Economic Calendar
Financial Glossary

My MENAFN
Portfolio Tracker

Voting

Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2000 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help