7-Dec-2017 10:56 AM

IATA: Middle East airline profits to double in 2018, but business models challenged

IATA forecast (05-Dec-2017) airlines in the Middle East will double net profit in 2018 to USD600 million. Demand in 2018 is expected to grow by 7%, outpacing announced capacity expansion of 4.9% (the slowest growth since 2002). According to IATA, the region's carriers face challenges to their business models from low oil revenues, regional conflict, crowded air space, the impact of travel restrictions to the US and competition from Turkish Airlines acting as a 'super connector'. IATA noted that despite the challenges, there is positive momentum heading into 2018. [more - original PR]

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