Gulf carriers to register $1.8 billion net profits in 2015: IATA

Says the region's carriers are expected to see a 12.9% growth in passenger numbers this year, the only region with a double-digit expansion

Middle Eastern airlines are expected to post a collective USD 1.8 billion net return for 2015 for an average net margin of 3.1 per cent or USD 9.61 per passenger, it has said.

According to the International Air Transport Association (IATA), the region's carriers are expected to see a 12.9 per cent growth in passenger numbers this year, the only region with a double-digit expansion.

IATA said an improvement in profitability is also expected to be driven by lower fuel costs.

Globally, IATA announced an upward revision of its 2015 industry outlook to a USD 29.3 billion net profit. On expected revenues of USD 727 billion, the industry would achieve a 4 per cent net profit margin.

The significant strengthening from the USD 16.4 billion net profit in 2014 reflects the net impact of several global factors, including stronger global economic prospects, record load factors, lower fuel prices, and a major appreciation of the US dollar, IATA said.

"All regions are expected to see an improvement in profitability in 2015 compared with 2014. There are, however, stark differences in regional economies, which are also reflected in airline performance. The industry's fortunes are far from uniform. Many airlines still face huge challenges," Tony Tyler, IATA's director general and CEO, said in a statement.

IATA said the recent decline in fuel prices was a welcome development.

The 2015 industry outlook is based on an average Brent crude oil price of USD 65 per barrel, which is 36 per cent below the 2014 price of USD 101.40.