Friday, June 23 2017

News & Events

UAE National Day 2016
Posted on: November 29, 2016

The month of December kicks off with a whirlwind of activity and excitement for – you guessed it – the UAE’s 45th National Day Anniversary! Here’s a brief roundup of the action to help you pla....

JetSmarter adds Dubai to portfolio of private jet destinations
Posted on: November 25, 2016

At the stroke of midnight, Emirates kicked off their Black Friday airfare sale with amazing two-for-one flights out of 11 major cities across the United States. Beginning Friday, you have 72 hours ....

Hong Kong & Shanghai Hotels celebrates historic milestone
Posted on: November 25, 2016

Today sees Peninsula Hotels’ parent company, Hong Kong & Shanghai Hotels, celebrate an impressive milestone; its 150th anniversary, marking its place as the oldest small hotel group in continuous op....

Qatar Airways boosts capacity on Cape Town, South Africa, flights
Posted on: May 20, 2015

Qatar Airways has increased daily capacity to the popular family holiday destination Cape Town, with the introduction of a Boeing 777 serving the route from this month. This means an additional 158....

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Press Releases

Improved profitability, but margins still pathetic: IATA

The International Air Transport Association (IATA) revised its industry outlook for 2010 to a net profit of US$15.1 billion (up from the US$8.9 billion forecast in September). Similarly, the association revised upwards its projections for 2011 to a net industry profit of US$9.1 billion (up from the US$5.3 billion forecast in September). Net margins remain weak at 2.7% for 2010 and falling to 1.5% in 2011. “Our profit projections increased for both 2010 and 2011 based on an exceptionally strong third quarter performance. But despite higher profit projections, we still see the recovery pausing next year after a strong post-recession rebound,” said IATA director general Giovanni Bisignani. “And the two-speed nature of the recovery is unchanged with European airlines continuing to under-perform other regions.”
Bisignani also characterized the improvements in terms of profit margins, which continue to disappoint. “Margins remain pathetic. With a 2.7% net margin in 2010 shrinking to 1.5% in 2011, we are nowhere near covering our cost of capital. The industry is fragile and balancing on a knife edge. Any shock could stunt the recovery, as we are seeing with the results of new or increased taxation on airlines and travellers in Europe,” he said. Looking ahead, Bisignani added, “The recovery cycle will pause in 2011. Although the US$9.1 billion profit projection for 2011 is better than we had previously forecast, next year the industry will face tougher conditions than what we are experiencing today.”


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