IATA releases airline forecast for 2016

IATA shows expected net profits of $1.7 billion in the Middle East in 2016, after the region only made net profit of $1.4 billion, lower than the predicted $1.8 billion.

 

Profit per passenger is expected to be $7.97, ranking the Middle East below European and North American carriers. Overall, the region is still expecting a good growth, with capacity expanding by 12.2% next year as a result of the growth in traffic in the region.

 

In general, IATA shows a promising year for the industry, with an average net profit margin of 5.1% being generated with total net profits of $36.3 billion.

 

The industry has been strengthened by lower oil prices, a strong demand for passenger travel, strong economic performance in key economies, such as the recovery in the Eurozone, and increased efficiency indicated by high load factors and increased capacity.

 

“The airline industry is delivering solid financial and operational performance. Passengers are benefiting from greater value than ever—with competitive airfares and product investments,” Tony Tyler, IATA’s director general and CEO.