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7-Dec-2017 11:00 AM

IATA forecasts rising costs will slow profit improvements for airlines in North America

IATA forecast (05-Dec-2017) airlines in North America will generate net profits of USD16.4 billion in 2018, up from USD15.6 billion in 2017. This is the strongest financial performance of any of IATA's major regions. Market conditions are expected to remain strong, with announced capacity growth of 3.4% likely to be slightly less than the traffic forecast of 3.5%. IATA stated North American airlines generated more than half of the industry's profits in the past three years, but rising cost pressures have slowed further improvements. Low hedging ratios mean rising fuel prices have hit the region first and labour cost pressures have been an issue, though the expectation is that this pressure will diminish in 2018. [more - original PR]

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