Results point to positive year for aviation

The aviation industry looks set to finish 2015 on a high note, according to the International Air Transport Association, as demand for air travel and airline profits looked up.

The month of September saw “solid demand growth” for both domestic and international traffic with the total revenue passenger kilometres up 7.3% on the previous corresponding period, edging slightly ahead of the August growth figure of 7.1%.

“The demand for air travel in September was robust—even with the economic slowdown in some key emerging markets such as China,” IATA director general and chief executive Tony Tyler said.

“The industry seems set for a positive end to 2015.”

Asia-Pacific airlines’ September traffic rose 6.8% on the same month last year as capacity climbed 5.9% and load factor crept up by 0.7 percentage points to 77.0%.

The increases come in spite of “notable declines” in trade activity in emerging Asia as well as “slower than expected” growth in China.

Meanwhile, Singapore Airlines said its second quarter net profit more than doubled from last year, but warned about uncertainty due to an economic slowdown in emerging markets led by China.

Net profit for the three months to September soared 135% to SG$213.6 million ($A217,000), boosted in part by higher dividends from long-term investments, the carrier said in a statement.

Lower fuel expenses and an absence of share loss from associated companies after budget carrier Tiger Airways was classified as a subsidiary also helped lift earnings.

Dubai’s Emirates airline saw its net profit surged 65% in the first half of the financial year to $US849 million ($A1.19 billion) on lower fuel costs and higher passenger numbers.

The largest Middle East carrier said fuel prices were 41% lower than a year before, while passenger numbers jumped 10% to 25.7 million in the six-month period ending September 30.

“This performance reflects the impact of lower fuel prices, and also the airline’s continued ability to grow passenger demand in line with significant capacity growth,” Emirates said.

Meanwhile, Virgin Australia turned in a positive set of results for the September quarter yesterday, with chief executive John Borghetti confident the carrier is “on track” to haul itself back into the black in the 2016 financial year.

Advertise with us

Email the Travel Weekly team at traveldesk@travelweekly.com.au

airlines aviation emirates iata singapore airlines virgin australia