• Book review

    Through persuasion, good leaders can become the best leaders, says Ian Mann.

  • Water shortage

    Climate-related consequences are raising food prices, joblessness, crime, and instability.

  • High food prices

    Mandi Smallhorne looks beyond the weather as the cause for rising food costs.

All data is delayed
See More

Airlines bank on India, China growth

Jun 06 2011 16:20
James-Brent Styan

Singapore - China and India will become the driving force of aviation in the future, said the International Air Transport Association (Iata) on Monday.

The global industry body said the Asia-Pacific region is already the single largest market for aviation in the world. “By 2014 it will represent 30% of the total market and it is still growing fast,” said Giovanni Bisignani, the outgoing CEO.

Bisignani said the region already represents 40% of the global cargo market.

“The region will produce 360 million more travellers by 2014, of which 210 million will be from China alone. China is hungry for aviation to drive prosperity. They have built 45 new airports in the past five years alone and are planning a further 52 by 2020.”

He added that three of the five largest airlines by market value are from the region.

“The region will also be the most profitable region this year. We expect Asia-Pacific carriers to earn $2.1bn in 2011, the most profitable of all regions. This region will also be the only region where demand increases (6.4%) will outstrip capacity growth (5.9%) in 2011.”

Iata also said on Monday that it expected the global aviation industry to make a combined profit of $4bn in 2011. African carriers are expected to make a loss of about $100m.

Iata is holding its annual meeting in Singapore this week with more than 700 industry leaders attending.

Increase in traffic

The body estimates that air traffic will increase to 16 billion people by 2050 and air cargo will increase to 400 million tonnes per year. In 2011 the expected number of airline passengers is 2.7 billion, while 48 million tonnes of cargo will be transported by air.

Bisignani said airlines were faced with a tremendous challenge to meet this growth in demand, due to profit margins not making the business sustainable.

“After a decade of crisis and shocks, airlines today are safer, stronger, leaner and greener. But sustainable profitability remains elusive," he said.

Estimated profits this year is about $4bn, while total revenue of is seen at $598bn. "Over the past four decades the net return of the industry has been 0.1%. This has led to an increasingly fragile industry,” he said.

iata  |  airlines


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The regulation of WhatsApp and other OTTs is:

Previous results · Suggest a vote