Quotes: 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
 Oct 7 2015 - Aramco in talks to acquire stake in China's CNPC refineryMENAFN
(MENAFN) Aramco said it is in talks to buy a stake in China National Petroleum Corp (CNPC) refinery as well as retail assets, as such a deal would help it sell more of its output to China.The Saudi ...

 Oct 7 2015 - Review: Cave, Conrad DubaiKhaleej Times
(MENAFN - Khaleej Times) IN A CITY where every imaginable type of cuisine is available around the clock it takes something a bit special to stand out from the crowd. Offering French culinary delights ...

 Oct 7 2015 - UAE- Fashion Forward has arrivedKhaleej Times
(MENAFN - Khaleej Times) Make sure your heels are high and your suit is pressed, the critical eye of fashion is setting its sights on Dubai. With New York and Paris Fashion Week now at an end, it's ...

 Oct 7 2015 - Get ready for WAFI Fashion WeekKhaleej Times
Calling all fashion connoisseurs, WAFI Mall is partnering with its fashion, beauty and accessory stores in order to bring you WAFI Fashion Week, running from October 12 - 15.The event will welcome a ...

 Oct 7 2015 - Sachin Tendulkar, Wasim Akram to appear at Arabian CentreKhaleej Times
(MENAFN - Khaleej Times) It's game on at Arabian Centre on October 9 as Sachin Tendulkar, Wasim Akram along with Harsha Bhogle will be there to meet fans.The stars will be sharing interesting ...

 Oct 7 2015 - Indian President to visit Jordan next weekJordan News Agency
(MENAFN - Jordan News Agency) India's President Pranab Mukherjee, will pay a several-day visit to Jordan on October 10, during which he will hold talks with His Majesty King Abdullah II on the latest ...

 Oct 7 2015 - Jordan- Temperatures will drop, rain forecast, JMDJordan News Agency
(MENAFN - Jordan News Agency) Unstable weather conditions are forecast across the Kingdom Tuesday with temperatures dipping 3-4 degrees Celsius below seasonal average, according to the Jordan ...

 Oct 7 2015 - Jordan- 6 arrested, narcotics, stolen cars seized in Ma'anJordan News Agency
(MENAFN - Jordan News Agency) Security apparatuses on Monday arrested six wanted people besides seizing hauls of narcotics and three stolen vehicles, Ma'an police told Petra as crackdown on culprits ...

 Oct 7 2015 - Jordan- FM meets Russian Federal Council ChairwomanJordan News Agency
(MENAFN - Jordan News Agency) Deputy Prime Minister and Minister of Foreign and Expatriates Affairs, Nasser Judeh, on Tuesday, discussed with Chairwoman of the Russian Federation Council, Valentina ...

 Oct 7 2015 - UAE- Hinton and Canizares share leadKhaleej Times
(MENAFN - Khaleej Times) Craig Hinton and Gabriel Canizares shot matching seven-under 65s on Monday to share the lead after the first round of the American Express Dirab Golf Championship, the sixth ...




Click to Apply


Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  

Middle East North Africa - Financial Network

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices


Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks

Saudi Arabia 

Economic Calendar
Financial Glossary

Financial Calculators

RSS Feeds [XML]

Corporate Monitor


Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters

© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help