North America Aviation Outlook 2018: another solid outlook, but not to 2017’s level

North American Airlines began 2017 under a cloud of uncertainty created by the unexpected election of Donald Trump as the 45th President of the United States of America. Mr Trump's Administration has spent much of 2017 embroiled in legal battles to institute travel bans on several countries, which has negatively impacted inbound tourism. The US Supreme Court recently decided to uphold the latest version of the ban until lower courts render decisions in cases where government attorneys have challenged previous judgments to overturn the policy. 2017 proved to be probably the industry's most profitable year the industry will have, but 2018's outlook remains strong.

Summary

• North American airline profitability is expected to shrink in 2018 as cost pressure grows;
• Many of the region's airlines have pledged to slash unit cost growth in 2018;
• Uncertainty over deliveries of Delta's Bombardier CSeries jets for 2018 is resolved after a trade panel ruled against Boeing's clams of Bombardier's illegal trade practices;
• North American capacity is projected to grow in 2018 as airlines operating in the region see a rebound in international markets.