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June 8, 2016 | 17:05 | Dubai
In its recently released report, Economic Performance of the Airline Industry, the International Air Transport Association (IATA) highlighted Middle Eastern carriers posting a 12.7% traffic increase in April. This is largely in line with the projections made for the region, which highlight the Middle East as the only region to have continually recorded double digit growth.
Other highlights from the report
The price of air transport for users continues to fall, after adjusting for inflation. The average return fare (before surcharges and tax) of USD 366 in 2016 is forecast to be 62% lower than 21 years earlier, after adjusting for inflation.
Middle Eastern airlines have one of the lower breakeven load factors. Average yields are low but unit costs are even lower, partly driven by the strength of capacity growth; forecast at 12.2% this year. Post-tax profits are expected to grow to $1.6 billion this year, representing a profit of $7.83 per passenger and a net margin of 2.5%. Amongst other regions, North America continues to record the strongest financial performance while Africa remains the weakest region, as has been the case in the last 2 years.