The International Air Transport Association (IATA) forecast that airlines in the Asia-Pacific region will post higher net profits next year on a rise in the number of travelers and lower oil prices, Korean Air Lines Co. said Thursday.
While expecting the global airline industry to post a net profit of $35.5 billion in 2019, up 4 percent from $32.3 illion a year earlier, IATA Director General and CEO Alexandre de Juniac said airlines in the Asia-Pacific region will report a net income of $10.4 billion from $9.6 billion during the same period, Korean Air said in a statement.
|IATA Director General and CEO Alexandre de Juniac speaks during a media briefing on the airline business for 2019 in Geneva on Wednesday. (IATA)|
"We had expected that rising costs would weaken profitability in 2019. But the sharp fall in oil prices and solid GDP growth projections have provided a buffer. So we are cautiously optimistic that the run of solid value creation for investors will continue for at least another year," de Juniac said in a media briefing on the airline business for 2019 in Geneva on Wednesday.
But, he warned that economic and political developments, such as the US-China trade war and Britain's plan to leave the European Union, remain as challenges for the growth of airlines.
Next year, Korean Air will host the annual IATA conference in Seoul on June 1-3, with 290 executives of airlines and aircraft manufacturers from 120 countries scheduled to take part, the statement said. (Yonhap)