Joined: 24 Dec 2006
|Posted: Sun Jan 07, 2007 12:30 am Post subject: Asia aviation sector profits set to slump
SYDNEY: Asian airlines will likely reap reduced profits in 2007 as increased competition offsets gains in passenger and freight traffic, a global aviation body said yesterday.
The International Air Transport Association (IATA) predicted that the sector would see total profits for Asia plummet from around $1.7 billion in 2006 to some $1.2bn this year.
"The lower profits are due to the increased competition in the region as a result of liberalisation, aircraft deliveries and new entrants," the IATA said.
The warning accompanied data showing Asia can expect strong gains in international passenger traffic while leading the global freight growth stakes.
Pakistan was expected to see the greatest advance at 8.2pc, with China boasting 8.1pc and India 7.9pc while Australia would lag behind at 4.5pc the airline organisation said.