• Conflict over water, coal

    SA's leaders have upped their support of the water-intensive coal industry, says Keith Schneider.

  • Cost of doing business

    The world can't afford the $4.7trn a year in environmental costs of business, says Mandi Smallhorne.

  • Voter paralysis

    With so much tilting voters against change, democratic reason is the loser, says Solly Moeng.

All data is delayed
See More

Iata: Global airline profits to rise

Dec 13 2012 12:49
James-Brent Styan
Cape Town - Airlines are expected to make a total net profit of $6.7bn in 2012, according to the International Air Transport Association's (Iata's) latest forecast on the global profitability of the industry as a whole.

Iata chief economist Brian Pearce said the association expects this number to increase to $8.4bn in 2014.

“The problem, however, is that margins remain very weak. For 2012 it will be around the 1% mark and next year we expect 1.3%.”

Pearce said airlines exposed to cargo are having an especially rough ride in current economic conditions.

“Cargo planes are flying around half empty. Many freighters are actually grounded. It’s very hard to do cargo business profitably at the moment,” he said.

Pearce said airfreight has been in decline over the past two years.

“There is some good news in this regard. We’ve seen the US economy pick up recently and that should create a floor which may help to see some growth in the cargo area next year,” he said.

Asia Pacific carriers are expected to be the best off, with an anticipated total profit of $3bn for 2012.

These airlines are closely followed by North American carriers, expected to report profits of $2.4bn.

Iata expects African airlines to break even in 2012. This remains unchanged from 2011.

The industry body said while the continent is expanding rapidly, its carriers are suffering from strong competition on long haul routes, high cost structures and a regulatory regime that inhibits the development of intra-Africa links.

 - Fin24

Follow James-Brent Styan on Twitter at @jamesstyan.


Follow Fin24 on Twitter, Facebook, Google+ and Pinterest.

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:


Debt is one of the biggest financial issues facing South Africans today. Find out how you can avoid and manage your debt with Fin24 and Debt Rescue.

Money Clinic

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

Voting Booth

The upcoming petrol price hike is:

Previous results · Suggest a vote