Carriers in the Asia-Pacific region are expected to generate a USD 5.1 billion profit for a 2.5 per cent net margin (USD 4.24/passenger) this year, according to the International Air Transport Association (IATA). The slowdown in the Chinese economy has had a dampening impact on profitability. Demand is expected to grow a healthy 8.1 per cent, slightly ahead of the 7.7 per cent forecast growth in capacity. Lower fuel costs will help, but the stronger dollar reduces the benefit in this region.
IATA has announced an upward revision of its 2015 industry outlook to a USD 29.3-billion net profit. On expected revenues of USD 727 billion, the industry would achieve a four per cent net profit margin. The significant strengthening from the USD 16.4 billion net profit in 2014 (re-stated from USD 19.9 billion) reflects the net impact of several global factors, including stronger global economic prospects, record load factors, lower fuel prices, and a major appreciation of the US dollar, as per a release.
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