23 October 2008

IATA sees trouble ahead in Middle East

TUNIS ââ¬' IATA has urged Middle East and North Africa (MENA) airlines to focus on an agenda of efficiency and expanding commercial freedoms.

ââ¬ÅâœThe oil price is falling, but what we save in fuel, we lose in revenue,ââ¬~ said IATA director general and CEO, Giovanni Bisignani, in a speech at the annual meeting of the Arab Air Carriers Association (AACO).

He added, ââ¬ÅâœThis industry will lose US$5.2 billion this year. Even the Middle East is not immune. The regionââ¬â¢s carriers posted 18.1% traffic growth in 2007. This year, August growth plummeted to 4.3%,ââ¬~ he said.

ââ¬ÅâœProfits of Middle East carriers will fall from US$300 million in 2007 to US$200 million this year. Only a handful of carriers will be profitable, while the majority bleed red ink.

ââ¬ÅâœThe regionââ¬â¢s fleet is set to double to 1,300 aircraft over the next decade as we enter a period of global economic uncertainty. The challenge of matching capacity to demand will be difficult,ââ¬~ said Bisignani.

• PRINT
• SEND TO A FRIEND
• SHARE

Post your comment

Your Comments

, be the first to post a comment.
Your email:

Your comment title:


Your comment:

Email other comments made to this story

5 characters