DUBAI, (PNA/Xinhua) — While the International Air Transport Association (IATA) revised its 2013 global industry outlook downwards for 2013, the international body of global civil aviation said on Monday it expected carriers in the Middle East to outperform all other regions in relation to profits this year.
IATA said Middle East carriers were expected to post profits of US$ 1.6 billion which is marginally ahead of the US$ 1.5 billion previously forecasted in June. “The region’s efficient hubs continue to support strong performance on long-haul markets,” said IATA. The impact of the Syrian crisis, on the other hand, had been limited, said IATA.
Regarding passenger demand in the Middle East, it was expected to grow by 10.5 percent, the strongest among all regions.
IATA revised its 2013 global industry outlook downwards to US$ 11.7 billion from US$ 12.7 billion, the previous projection in June. Total global revenues shall hit US$ 708 billion by the end of 2013, said IATA.
Tony Tyler, IATA’s director general and chief executive, said “profitability continues on an improving trajectory. But we have run into a few speed bumps. Cargo growth has not materialized. Emerging markets have slowed.” However, the latter assessment was only partly applying to the Middle East.
Dubai, the biggest hub in the region which is projected to hit 65.4 million passengers in 2013, will open its new airport Al-Maktoum for passengers on Oct. 27. Al-Maktoum is planned to become the world’s biggest airport by 2025 with a planned capacity of over 160 million passengers per year.
Oil prices are expected to average at US$ 109 per barrel (Brent) for the year. “While this is US$ 1.0 higher than previously expected, jet fuel prices have softened slightly,” said the IATA report.
Regarding the outlook for 2014, Tyler said next year is expected to see profit more than double compared to 2012.