Monday, June 03, 2019

Latin American Airlines should profit US $200 million in 2019

Seoul – Latin American Airlines must deliver net income of US $200 million in 2019, according to estimates released today by the International Air Transport Association (IATA). The result represents a modest improvement in relation to the loss of U $500 million reported in 2018, with the highest oil prices being compensated for the recovery of the Brazilian economy. According to Iata estimates, the demand in the region should grow 6.2% in 2019, while the capacity should increase 5.1%, with the occupancy rate going from 81.6% to 82.5%. In 2018, the demand in the region grew 7% while capacity increased by 7.3%. With the exception of Latin America and North America, all regions should present a reduction in profitability in 2019, according to Iata estimates. North American Airlines should deliver the strongest financial performance among all regions, with a profit (after taxes) of US $15 billion, above the profit of Us$14.5bn reported last year. The performance is equivalent to the net profit of US $14.77 per passenger and represents a significant evolution compared to that recorded in 2012 (US $2.3 per passenger), observes Iata. The net margins of North America should be at 5.5%, below 2018 levels due to high above the expected fuel costs and the slowdown in global economy growth. Demand in North America should grow 4.3% in 2019, slowing down to the 5.3% increase reported a year earlier, points to Iata. The capacity should also grow less, from 4.9% to 4.1% this year. With this, the occupancy rate should record a discrete advance, from 83.9% to 84.0%, predicts the association that performs annual meeting this weekend in Seoul, South Korea. For the global demand for air transport The Association estimates growth of 5% this year, after advancing 7.4% last year. The capacity, in turn, should grow 4.7% this year, below the expansion of 6.9% of 2018, with the occupancy rate going from 81.9% to 82.1%. * The journalist travels at the invitation of the International Air Transport Association
Exame - 02/06/2019 News Item translated automatically
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