SOUTH AFRICA: International airline group IATA raises profit forecast at meeting in South Africa

Record ID: 459186

  • Title: SOUTH AFRICA: International airline group IATA raises profit forecast at meeting in South Africa
  • Date: 3rd June 2013
  • Summary: CAPE TOWN, SOUTH AFRICA (JUNE 3, 2013) (REUTERS) CAPE TOWN LANDSCAPE EXTERIOR OF CAPE TOWN INTERNATIONAL CONVENTION CENTRE MAP OF AFRICA WITH SYMBOLS DELEGATES AT CONVENTION CENTRE POSTER OF 69TH INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA) CONFERENCE DELEGATES TALKING DELEGATES CAPE TOWN, SOUTH AFRICA ( JUNE 02, 2013) (REUTERS) INTERIOR OF CONFERENCE ROOM VARIOUS OF IATA CHIEF EXECUTIVE TONY TYLER AT PODIUM ADDRESSING DELEGATES (SOUNDBITE) (English) CEO OF IATA TONY TYLER SAYING: "Its very important that ICAO (International Civil Aviation Organisation) which is where the governments who make the decisions on these things, sit. It's very important that they come up with a solution for the industry that's common and standard right around the world and we in the airline industry want to to show them some direction and give them an indication of where we think they should be heading when they look at those very important questions." BOEING LOGO ON POSTER LIST OF SPONSORS (SOUNDBITE) (English) CEO OF IATA TONY TYLER SAYING: "Well as far as the outlook for the industry goes, we've just published a new forecast for industry profits for the year and we're forecasting now a profit of 12,7 billion dollars for the industry for the year which is up over our previous forecast and up over last year. It may sound like a lot of money but its still a net profit margin of only 1,8 percent and actually it amounts to about four dollars a passenger which is less than you'd have to pay for a sandwich in many parts of the world." DEPUTY PRESIDENT OF SOUTH AFRICA KGALEMA MOTLANTHE WALKING UP TO PODIUM (SOUNDBITE) (English) DEPUTY PRESIDENT OF SOUTH AFRICA KGALEMA MOTLANTHE SAYING: "There is every reason to believe that aviation in South Africa and the continent of Africa will continue to grow and to boost social and economic development. The one global market and open airspace vision is indeed achievable and to do this we need safety infrastructure and airline regulations that are economically beneficial to the entire industry." STAGE WITH MOTLANTHE AT PODIUM AUDIENCE DELEGATES SOUTH AFRICAN PUBLIC ENTERPRISES MINISTER MALUSI GIGABA AT PODIUM (SOUNDBITE) (English) SOUTH AFRICAN PUBLIC ENTERPRISES MINISTER MALUSI GIGABA SAYING: "Finally I do urge and encourage further entrants into Africa by more airlines particularly the low cost carriers. I am extending this invitation with caution to airlines which are already doing business with Africa and those still considering to do so. As Africa grows, I wish to reiterate that we need more efficient and safe air travel. In that regard, I hope that IATA's African office based in Sandton, Johannesburg has renewed its lease for yet another 99 years. To all of you I would like to advise you that the future is African. Thank you." VARIOUS OF DELEGATES POSTER OF AIRPLANE DELEGATES IN CONFERENCE CENTRE
  • Embargoed: 18th June 2013 13:00
  • Keywords:
  • Location: South Africa
  • Country: South Africa
  • Topics: Business,Industry
  • Reuters ID: LVA46AVZYKWRI89EO0LO1PTBTUI4
  • Story Text: Global airlines should post an industry profit of $12.7 billion this year, an increase from a previous $10.6 billion forecast, as lower oil prices and belt-tightening offset difficult economic conditions, industry group IATA said on Monday (June 3).

    "Well as far as the outlook for the industry goes, we've just published a new forecast for industry profits for the year and we're forecasting now a profit of 12,7 billion dollars for the industry for the year which is up over our previous forecast and up over last year," International Air Transport Association director general Tony Tyler said at a meeting of more than 200 airlines in Cape Town.
    However, the International Air Transport Association said margins remained weak amid Europe's ongoing debt crisis.

    "It may sound like a lot of money but its still a net profit margin of only 1,8 percent and actually it amounts to about four dollars a passenger which is less than you'd have to pay for a sandwich in many parts of the world," he told Reuters Television.
    Addressing reporters later, Tyler said record passenger numbers and growth in "ancillary" revenues were the two key reasons driving improved profitability.
    Airlines are expected to fill a record 80.3 percent of seats and transport an unprecedented 3.13 billion passengers in 2013, up from 79.2 percent and 2.98 billion respectively last year, as operational changes and better capacity management filter through.
    Tyler said ancillary revenues would rise to $36 billion, or 5 percent of total turnover, as airlines unbundle more services from base fares and charge for additional services such as meals, extra baggage and seats.
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