IATA: North America to dominate airline financial performance in 2017

IATA released (13-Jan-2017) outlooks for profitability for each of its five global regions:

• North America: Strongest financial performance with profit projected at USD18.1 billion and USD19.58 per passenger. Profitability is underpinned by consolidation, which is helping to sustain load factors, and ancillary revenues, which limit the impact of higher fuel costs;
• Europe: Forecast profit of USD5.6 billion, and per passenger profit of USD5.65. Breakeven load factors are highest in Europe, caused by the competitive open aviation area and high regulatory costs. Having been affected by terrorist attacks last year, passenger growth is expected to recover somewhat in 2017;
• Asia Pacific: Airlines expected to report USD6.3 billion in profit, at USD4.44 per passenger. The region is very diverse region for airline financial performance. In general, higher fuel costs in 2017 will be partly offset by improved cargo markets, which are particularly important in this manufacturing region;
• Middle East & Africa: Middle East airlines projected to earn USD300 million, while African carriers are projected to lose USD800 million (a loss of USD9.97 per passenger). The operating environment for Middle Eastern and African carriers is expected to remain challenging. Capacity growth, regional tensions, and the impacts of commodity price developments will remain key factors in 2017;
• Latin America: Regional profit forecast of USD200 million and per passenger profit of 0.76. Regional airlines have faced a harsh environment in recent years, with weak home markets and currencies. This is starting to turn around and some recovery is expected in 2017. [more - original PR]