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FINANCIAL NEWS
ME airlines profit to hit USD1.6b in 2015
10 Dec 2014
(MENAFN) According to the International Air Transport Association (IATA), Middle East airlines are expected to register an increase in their net profits to reach USD1.6 billion in 2015, due to the growth in passenger capacity by more than 15 percent, Arabian Business reported.
The association said that the increase in passenger capacity, which is expected to grow by 15.6 percent in 2015 compared with 11.4 percent in 2014, will result in net profits rising by USD500 million compared to this year, representing a net profit margin of 2.5 percent.
Globally, IATA said that airlines are expected to post a collective global net profit in 2014 of some USD19.9 billion, which is up from the USD18 billion the association projected in June, and that their collective profit will hit USD25 billion in 2015, as a result of the declining in oil prices.
“The industry outlook is improving. The global economy continues to recover and the fall in oil prices should strengthen the upturn next year. The industry outlook is largely positive, but there are a number of risks in today’s global environment, political unrest, conflicts, and some weak regional economies, among them,” IATA’s director general and CEO said.
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