Airlines based in the Middle East are forecasted to have record-breaking profits of $1.4 million this year.
Last year, Middle East airlines managed to accumulate the impressive $900 million in profits. In 2013, this number will rise even more. At first it was expected that Middle East carriers will have profits of $1.1 billion. However, now it is said that regional airlines will score $1.4 billion this year. That prediction was made by IATA (International Air Transport Association). The association published statistics and data that show that ME airline companies will continue to enjoy growth in traffic, as well as better link to developing markets. As a result, the carriers in the regions will have even stronger international influence and popularity. Also, IATA expects that the capacity of airlines in the Middle East will reach nearly 13% and the demand – 13.7%.
The current regional leaders in the sector are carriers like the Dubai-based Emirates Airline, Ethihad Airways which is headquartered in Abu Dhabi, as well as Qatar’s state-owned carrier Qatar Airways. Currently. Their profitability is equal to 3.4%. This number is less only than the profits of airline companies in North America and the Asia-Pacific region which enjoy profits of 4.1% and 5.3%, respectively.
However, the International Air Transport Association does not expect impressive revenues on an international level. It is predicted that the profits of global carriers will be about 1.6% or $10.6 billion. Nevertheless, airline industry experts are optimistic about the future of the sector. That is mainly due to the fact that the demand continues to grow. In addition, cargo markets are now getting back on their feet.
Still the association stated that despite the better business conditions, the international aviation sector may face a number of challenges. The crisis situation in Europe has little chance to end anytime soon. Also, on the other side of the ocean, the economy in the U.S. is having a hard time recovering.