Airlines To Fly 3.6 Billion Passengers And Deliver US$36 Bln In Profits This Year

KUALA LUMPUR, Feb 23 (Bernama) -- Lower oil prices and efficiency gains across the board are set to see airlines delivering US$36 billion in profits and carrying 3.6 billion passengers globally this year. Airlines are also starting to provide a normal return to their investors at the aggregate level, International Air Transport Association (IATA) Director General and Chief Executive Officer Tony Tyler said on Monday. Such improvements in the industry are crucial as investors are needed to fund the industry's expansion, he said at a media roundtable in Hong Kong, Monday. "For the second year in a row and only the second time in our history airlines collectively are set to deliver a return in excess of that -- 8.6 per cent." Airlines now regularly fill over 80 per cent of their seats and newer generation aircraft are 15-20 per cent more fuel-efficient. Consolidation, joint ventures and alliances are giving consumers more choice and helping airlines to be more efficient, said Tyler. However, he also cautioned that airline profits are still fragile in the face of any new taxes that some governments might be planning. Furthermore, the profitability is not evenly distributed, he said, adding that the majority of the industry's profits are being generated in North America amounting to US$19.2 billion and Asia -- in aggregate -- is lagging in profitability. "On a per passenger basis they will retain over US$21. Asia-Pacific airlines are expected to generate a US$6.6 billion profit which equates to just over US$5 per passenger," said Tyler, who will retire from the post in June 2016. Out of 3.8 billion passengers expected this year, about 34 per cent will be in the Asia-Pacific region, he said. "That will grow to 42 per cent by 2034. China, which is already an aviation powerhouse, will be even more pivotal with the journeys of one in five travellers being either to, from or within its geography," he said. At a global level, IATA expects seven billion passengers by 2034. "That's 3.2 billion more travellers than we expect this year. Of these, nearly half (1.8 billion) will be in Asia-Pacific -- the vast majority on routes linked to China," said Tyler. He said traffic continues to grow and there has not been any indication that the market turmoil in China has impacted travel. --BERNAMA