Loading...IATA which stands for the International Air Transport Association has decreased possible prospects for the world’s aviation commerce’s income. It is expected to be 28 billion of dollars in comparison with 35.5 billion.
It is according to the economic forecast in December 2018. The new revised prospects are not so good as well. There is a decrease up to 30 billion of dollars.
The association of global airlines claims that business market due to the rise of fuel prices and its cost of a fortune and crisis of the world trade is becoming worse and worse.
Weakening of profits due to fuel cost rise
In 2019 it expected that total costs will increase up to 7.4% thus they surpass a 6.5% increase in profits. Consequently, net margins will lessen to 3.2% (in comparison with 3.7% in 2018). The income received from each traveller will correspondingly decrease to 6.12 dollars compared to 6.85 in 2018. Everything is due to the rise of costs.
Global trade is likely to continue to experience difficulties
Moreover, it is forecast that global market is highly possible will go on decreasing and weakening taking into account the US and China war for the place in the global trade. First of all, it influences cargo sphere of business. But commercial aviation may face consequences as well. So, passengers will suffer from the rise of tensions.
Despite the mentioned factors deep crises is not expected as IATA states.
