Airlines Forcibly Removing More and More Drunk Passengers From Flights

Esequiel Farfan
Diciembre 8, 2017

The International Air Transport Association (IATA) reported on the performance of the airline industry at its headquarters in Geneva this week, revealing that airlines served more than 20,000 city-pair connections this year.

Airlines with low levels of hedging (such as those in the USA and China) were are likely to feel the impact of this increase more immediately than those with higher average hedging, including those in Europe.

Strong demand, efficiency and reduced interest payments will help airlines improve net profitability next year, despite rising costs.

The fuel bill is expected to be 20.5 per cent of total costs in 2018 (up from 18.8 per cent in 2017). Accelarating labour costs will see wages take a 30.9% chunk meanwhile next year.

"Safety performance is solid".

Turning to environmental concerns, IATA, which said the inflation-adjusted cost of flying had halved for comsumers since 1996, said aviation was committed to managing its carbon footprint with a near-term goal of capping emissions through carbon-neutral growth from 2020. "The region's carriers face challenges to their business models", the IATA reported, adding, "from low oil revenues, regional conflict, crowded air space, the impact of travel restrictions to the United States, and competition the new "super connector" (Turkish Airlines)".

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"It's still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses", he said.

Net profit for 2017 will total $34.5 billion, which is $3.1 billion more than June estimates had the year ending.

"The boost to cargo volumes in 2017 was a result of companies needing to restock inventories quickly to meet unexpectedly strong demand", IATA said.

And another thing to expect in 2018: Planes will be more crowded.

He added that there is need to invest more in modern infrastructure to cater for the growing demand for air transport on the continent. While this was lower than the likely 7.5 per cent improvement in RPKs in 2017, the figure was still above the 10-15 year average of 5.5 per cent. This led cargo volumes to grow at twice the pace of the expansion in world trade of 4.3 per cent. The strong cyclical rise in cargo markets has been a particular support for this region, whose carriers account for 37 per cent of global cargo capacity.

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