Headwinds persist for South-east Asia's airlines in 2019
They will be buffeted by competition and pressure on yields but easing fuel costs offer some relief
Add BT as a preferred source
Nisha Ramchandani
COMPETITION and pressure on yields are likely to present recurring headwinds for South-east Asia's carriers, going into the New Year.
According to the International Air Transport Association's (Iata) latest forecast, the industry's collective bottom line should rise 10 per cent to US$35.5 billion in 2019, driven primarily by North America which will contribute roughly half of that amount. For this year, Iata projects that the world's airlines will amass US$32.3 billion in profits.
Revenue is projected to increase nearly 8 per cent to US$885 billion in 2019 as passenger numbers and cargo volumes expand, although slower demand growth for passenger and cargo traffic is expected compared with 2018. Globally, the outlook is broadly positive, with all regions - aside from Africa - expected to turn a profit next year. This comes on the back of expectations of global economic growth as well as lower oil prices.
TRENDING NOW
High Court rejects bid to bring ST Engineering unit into trademark infringement suit over RSAF aircraft parts
Ex-Sakae director Ong Siew Kwee handed 10.5-year jail term for misappropriating S$15.8 million, lying in court
DBS sees choppy Q3 for STI as investors pivot from Singapore banks to listcos that are unlocking value
Yeoh Pei Xien: YTL’s third-gen scion with a pastor’s heart
