IATA: European airlines to continue to lag Nth American peers in profitability in 2017

IATA reported (08-Dec-2016) it expects European airlines will report an aggregate net profit of USD5.6 billion in 2017, down from USD7.5 billion for 2016. Regional airlines are forecast to generate a 2.9% net profit margin and a per passenger profit of USD5.65. There remains a "significant gap" between the financial performance of the European carriers and North American airlines. Capacity in 2017 is expected to grow by 4.3%, ahead of demand of 4.0%. The region is subject to "intense competition and hampered by high costs, onerous regulation and high taxes". In addition, terrorist threats "remain a real risk, even if confidence is starting to return after the tragic incidents in recent times". [more - original PR]