Mixed fortunes for Asian airlines in 2018

WHILE passenger and cargo traffic are expected to grow in 2018, South-east Asian carriers may continue to face headwinds, especially where yields are concerned.

According to the International Air Transport Association's (Iata) latest projection, Asia-Pacific airlines are expected to earn profits of US$9 billion in 2018, up from an expected bottom line of US$8.3 billion this year. Collectively, the world's airlines are expected to cruise towards a record US$38.4 billion in 2018, with the North American carriers contributing to nearly half of the bottom line.

Global capacity growth (measured in available seat kilometres) is forecast to ease to 5.7 per cent next year, down from 6.3 per cent in 2017. If passenger demand holds firm, this scaling back of capacity growth could spell good news for yields.