'India's the new China' as airlines more than double profit outlook

As aviation executives descended on Istanbul this week for the industry’s annual general meeting, the mood among the crowd was openly buoyant, with participants brushing aside concerns that high inflation or anaemic economic growth risk crimping demand.
 

Willie Walsh, director general of the International Air Transport Association (IATA), set the tone when he doubled his forecast for profitability in 2023, predicting net income of $9.8 billion across the 300 airlines the lobby group represents. Carriers have enjoyed bumper summer bookings, lifted by a leisure travel rebound that started with short-haul flights and is increasingly taking hold on more lucrative long-haul routes.
 

Walsh was upbeat about “massive opportunities” in the vibrant Indian aviation market. Talking about the Indian market, he highlighted that there are CEOs of two Indian airlines (Air India’s Campbell Wilson and IndiGo’s Pieter Elbers) on the Board of Governors of IATA and it is the first time that has happened. “There are massive opportunities and we are really excited about the future of aviation in India,” he told a media briefing on the sidelines of the IATA Annual General Meeting (AGM). 
 

Qantas Airways CEO Alan Joyce dubbed India “the new China”. The Chinese market remains “very weak” at about half the level it was before Covid. “We think India has better growth prospects than China for us and we are putting more capacity in,” Joyce said.
 

Bullish on the Indian market, Lufthansa Group CEO Carsten Spohr has said the airline group is working closer with Air India as well as expanding its own operations into the country. 

1 unruly incident for every 568 flights globally

One unruly passenger incident was reported for every 568 flights last year compared to one such incident per 835 flights in 2021, according to international airlines’ grouping IATA. In recent times, there has been a steep rise in unruly passenger behaviour incidents, including in India. As it released an analysis of such incidents on Sunday, the International Air Transport Association (IATA) also urged more states to take the necessary authority to prosecute passengers under Montreal Protocol 2014. “Latest figures show that there was one unruly incident reported for every 568 flights in 2022, up from one per 835 flights in 2021. The most common categorisations of incidents in 2022 were non-compliance, verbal abuse and intoxication,”IATA said in a release.

IATA: Airfares flat, taxes burdensome

Airfares globally have remained flat in real terms compared with 2019, IATA head Willie Walsh said on Monday, as carriers around the world have hiked their prices for airline tickets.

Taxes and charges in some jurisdictions have added 33 per cent to the price of tickets globally, according to IATA’s calculations, Walsh added.

Airbus warns of widebody supply crunch 

Airbus SE said the widebody aircraft market is set to experience similarly lengthy wait times as the workhorse single-aisle segment because airlines are rapidly stocking up on long-haul jets, while supply disruptions on equipment like seats limits output. .

French ATC strikes a worry: IATA

French air traffic control strikes are causing serious concern for the global airline industry, IATA head Willie Walsh said on, as they have forced capacity cutbacks for many airlines.