Global Airline Industry Continues To Face Hurdles
The worldwide airline market persists to face risks in 2012, from intensifying operating cost in fuel of particular and continued economic weakness. Though the International Air Transport Association (IATA) projects on the whole airline profits of $3 billion for the present year, it is much down from $4.8 billion projected last September. As travel demand is picking up, the IATA projects global airline passenger growth of 4.19% in 2012 versus 4% forecasted previously. Air transport projects a major role in developing nations, generating $490 billion in economic activity. It is forecasted that by the year 2030, 81 million jobs and $6.8 trillion in economic activity will have air transport at their root. Aviation is a global business and requires globally corresponding rules to function efficiently. Unfortunately many of the rules and regulations laid down by individual countries are not constant with each other leading to nuisance for the passenger and increased costs.
Some of the leading figures in the aviation industry are Qatar Airways, Malaysia Airlines,Delta Airlines, American Airlines, Lufthansa, Etihad Airways, Emirates, British Airways, Oman Air, Air Canada, South African Airways, Oman Air, Finnair, Virgin Australia and Virgin America.
Airline Industry is exceptional from other industries. It is a highly capital intensive industry but with low profit. Due to excessive costs, intensive competition and low profitability a number of airlines have gone bankrupt. It is highly in danger to the economy of a state. The unpredictable prices of the fuel are beyond the airline industry. Due to high taxes, incompetent air traffic organization infrastructure, European Airlines are expected to post the biggest loss of any area. The Middle East area has shown the biggest traveler traffic growth with a 17 % increase in demand. The worldwide passenger traffic has extended from 4.7 percent in the year of 2002 to 11.6% in 2012. North American Airlines are projected to continue to progress profitability with a profit of $1.8 billion in 2012.Asia Pacific carriers will also see a profitability rise from its cargo division. The only region in the red for 2013 is European Airlines although the loss will be trimmed by improved global trading environment
The cargo market has remained constant in the first half of 2012 and showed considerable improvement in the second half. The cargo capacity grew by 3 % points ahead of demand. It is estimated that by 2013, the aviation revenues will climb to $7.6 billion with a slightly stronger economic growth and lower oil prices. This is based on an estimate for global GDP of 2.4% growth.