After the pressure on profitability exerted by the rising costs of oil by 2018 is a good year seems to be taking shape for the airlines. According to forecasts of the international air transport Association (IATA), the decline in oil prices should benefit the airline companies, if the price of a barrel of oil stabilizes around $ 65 next year, compared to an average price of 73 dollars observed in 2018.
“We thought that rising costs would weaken profitability in 2019. But the sharp fall in oil prices and forecasts of strong GDP growth have been an area tampo”.
The IATA table and on an increase of 9.9 % of the net profits of the airline industry, to reach 35.5 billion by 2019. If these forecasts are confirmed, the airlines would then, to a decade of profitability. For the industry as a whole, revenues should reach about 885 billion, an increase of 7.7% compared to 2018.
the good health of The air transport is mainly by the continuous growth of global traffic. For the past 20 years, average rates have fallen by more than 50%, and the multiplication of options available to travellers has to snatch a middle-class gourmet travel, particularly in emerging countries. The next year, nearly 4.59 Ultrabet billion passengers expected to take the plane, or 250 million more than in 2018. Within two decades, the IATA predicts a doubling of air traffic worldwide, which is expected to reach in 2037 the number of 8.2 billion passengers.
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This dramatic rise poses undeniably a reflection on the ecological future of the sector, with its many challenges, environments, and the extension of airport infrastructures adapted.
delays of 2018 weigh on the growth of european companies
But between trade wars, political instabilities and disputes in social, IATA, however, shows a “cautious optimism”. During a press conference on Wednesday in Geneva, Alexandre de Juniac pointed to “the risks associated with the volatility of the economic and political environment” for the growth of the aviation sector.
so far, european airlines are expected to record a slight decline in their net profits. IATA is forecasting a drop of 1.4% of their net profits, freeing up $ 7.4 billion in 2019. In a market european sky is very fragmented and competitive, the yields remain low and the costs of regulatory compliance are expensive. But this slight decline in profitability is mainly due to the recurrent malfunctions of air traffic control. The next year, the old continent should hang around an additional cost of more than $ 2 billion, related to the increase in delays by 2018 61%.
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on the other hand, fiscal charges and airport supported by european airlines remain significantly higher than those in force on the american continent. Like last year, the u.s. carriers that are expected to record the best economic performance in the world. Their net profits are expected to swell by nearly $ 2 billion, to reach about 16.6 billion dollars. On the north American continent, the net profit provided for by passage of 16.77 and $ 6,40 $ for european carriers.