Travel/Tourism
Global Airline Profits To Hit $29.8m in 2017—IATA
By Modupe Gbadeyanka
The International Air Transport Association (IATA) has declared that it expects the global airline industry to make a net profit in 2017 of $29.8 billion.
On forecast total revenues of $736 billion, that represents a 4.1 percent net profit margin.
This will be the third consecutive year (and the third year in the industry’s history) in which airlines will make a return on invested capital (7.9%) which is above the weighted average cost of capital (6.9%).
IATA revised slightly downward its outlook for 2016 airline industry profitability to $35.6 billion (from the June projection of $39.4 billion) owing to slower global GDP growth and rising costs. This will still be the highest absolute profit generated by the airline industry and the highest net profit margin (5.1%).
“Airlines continue to deliver strong results. This year we expect a record net profit of $35.6 billion. Even though conditions in 2017 will be more difficult with rising oil prices, we see the industry earning $29.8 billion. That’s a very soft landing and safely in profitable territory. These three years are the best performance in the industry’s history—irrespective of the many uncertainties we face. Indeed, risks are abundant— political, economic and security among them. And controlling costs is still a constant battle in our hyper-competitive industry,” said Alexandre de Juniac, IATA’s Director General and CEO.
“We need to put this into perspective. Record profits for airlines means earning more than our cost of capital. For most other businesses that would be considered a normal level of return to investors. But three years of sustainable profits is a first for the airline industry. And after many years of hard work in restructuring and re-engineering the business the industry is also more resilient. We should also recognize that profits are not evenly spread with the strongest performance concentrated in North America,” said de Juniac.
2017
While airline industry profits are expected to have reached a cyclical peak in 2016 of $35.6 billion, a soft landing in profitable territory is expected in 2017 with a net profit of $29.8 billion. 2017 is expected to be the eighth year in a row of aggregate airline profitability, illustrating the resilience to shocks that have been built into the industry structure. On average, airlines will retain $7.54 for every passenger carried.
Expected higher oil prices will have the biggest impact on the outlook for 2017. In 2016 oil prices averaged $44.6/barrel (Brent) and this is forecast to increase to $55.0 in 2017. This will push jet fuel prices from $52.1/barrel (2016) to $64.9/barrel (2017). Fuel is expected to account for 18.7% of the industry’s cost structure in 2017, which is significantly below the recent peak of 33.2% in 2012-2013.
The demand stimulus from lower oil prices will taper off in 2017, slowing traffic growth to 5.1% (from 5.9% in 2016). Industry capacity expansion is also expected to slow to 5.6% (down from 6.2% in 2016). Capacity growth will still outstrip the increase in demand, thus lowering the global passenger load factor to 79.8% (from 80.2% in 2016).
The negative impact of a lower load factor is expected to be offset somewhat by a strengthening of global economic growth. World GDP is projected to expand by 2.5% in 2017 (up from 2.2% in 2016). Along with structural changes in the industry, this is expected to help stabilize yields for both the cargo and passenger businesses. This is a welcome development as yields (calculated in dollar terms) have fallen each year since 2012.
There is some optimism over the prospects for the cargo business in 2017. The break in falling yields and a moderate uptick in demand (3.5%) will see cargo industry volumes reach a record high of 55.7 million tonnes (up from 53.9 million tonnes in 2016). Industry revenues are expected to rise slightly to $49.4 billion (still well below the $60 billion level of annual revenues experienced in 2010-2014). Trading conditions remain challenging.
“Connectivity continues to set new records. We expect nearly 4 billion travelers and 55.7 million tonnes of cargo in the coming year. And almost 1% of global GDP is spent on air transport—some $769 billion. Air transport has made the world more accessible than ever and it is a critical enabler of the global economy,” said de Juniac.
“Governments, however, do not make aviation’s work easy. The global tax bill has ballooned to $123 billion. Over 60% of countries put visa barriers in the way of travel. And the total number of ticket taxes exceeds 230. Billions of dollars are wasted in direct costs and lost productivity as a result of inefficient infrastructure. These are only some of the hurdles which confront airlines. Our aim is to work in partnership to help governments better understand and fully maximize the social and economic benefits of efficient global air links,” said de Juniac.
2017 Regional Analysis
North American carriers: The strongest financial performance is being delivered by airlines in North America. Net post-tax profits will be the highest at $18.1 billion next year, although down slightly from the $20.3 billion expected in 2016. The net margin for the region’s carriers is also expected to be the strongest at 8.5% with an average profit of $19.58/passenger. In 2017 capacity offered by the region’s carriers is expected to grow by 2.6%, slightly outpacing expected demand growth of 2.5%. Recent consolidation continues to underpin the region’s strong profitability, even as the region faces upwards cost pressures which include the price of fuel.
European carriers: Airlines based in Europe are expected to post an aggregate net profit of $5.6 billion in 2017 which is below the $7.5 billion for 2016. Nonetheless, carriers there are forecast to generate a 2.9% net profit margin and a per passenger profit of $5.65. There remains a significant gap between the performance of the region’s carriers and the performance of North American ones. Capacity in 2017 is expected to grow by 4.3%, ahead of demand growth which is forecast at 4.0%. The region is subject to intense competition and hampered by high costs, onerous regulation and high taxes. And terrorist threats remain a real risk, even if confidence is starting to return after the tragic incidents in recent times.
Asia-Pacific carriers: Airlines in the Asia-Pacific region are expected to generate a net profit of $6.3 billion in 2017 (down from $7.3 billion in 2016) for a net margin of 2.9%. On a per passenger basis average profits are anticipated to be $4.44. Capacity offered by the region’s carriers is forecast to grow by 7.6%, ahead of a forecast growth in demand of 7.0%. Improved cargo performance is expected to offset rising fuel prices for many of the region’s airlines. The expansion of new model airlines and progressive liberalization in the region is intensifying already strong competition. In addition profitability varies widely across the region.
Middle Eastern carriers: Middle Eastern airlines are forecast to generate a net profit of $0.3 billion for a net margin of 0.5% and an average profit per passenger of $1.56. This is below the $900 million profit expected in 2016. Average yields for the region’s carriers are low but unit costs are even lower, partly driven by the strong capacity expansion, forecast at 10.1% this year, ahead of expected demand growth of 9.0%. Threats are emerging to the success story of the Gulf carriers, including increases in airport charges across the Gulf States and growing air traffic management delays.
Latin American carriers: Latin American airlines are expected to post a net profit of $200 million, which is slightly lower than the $300 million forecast for 2016. Profit per passenger is expected to be $0.76 with a net profit margin of 0.7%. Capacity offered by the region’s carriers is forecast to grow by 4.8% which is ahead of expected demand growth of 4.0%. Despite some signs of improvement in the region’s currencies and economic prospects, operating conditions remain challenging, with infrastructure deficiencies, high taxes, and a growing regulatory burden across the continent. Venezuela continues to block the repatriation of some $3.8 billion of industry funds in contravention of international obligations.
African carriers: Carriers in Africa are expected to deliver the weakest financial performance with a net loss of $800 million (broadly unchanged from 2016). For each passenger flown this amounts to an average loss of $9.97. Capacity in 2017 is expected to grow by 4.7%, ahead of 4.5% demand growth. The region’s weak performance is being driven by regional conflict and the impact of low commodity prices.
2016
2016 will be a record year for industry profitability. The expected net profit of $35.6 billion is slightly ahead of the $35.3 billion recorded in 2015, as is the 5.1% net profit margin (slightly ahead of the 4.9% recorded for 2015).
The modest revision from previous expectations largely is owing to two factors: slower global GDP growth: 2.2%, which was below mid-year expectations of 2.3% growth and non-fuel unit costs increased by 2.0% in 2016.
The Business of Freedom
“Air transport is the business of freedom. The safe and efficient global movement of goods and people is a positive force in our world. Aviation’s success betters peoples’ lives by creating economic opportunity and supporting global understanding. We must stand firm in the face of any rhetoric that would put limits on aviation’s future success,” said de Juniac.
Some key indicators of the strength of global connectivity include:
The average return airfare in 2017 is expected to be $351 (2015 dollars), which is 63% below 1995 levels.
Average air freight rates in 2017 are expected to be $1.48/kg (2015 dollars) which is a 68% fall on 1995 levels.
The number of unique city pairs served by aviation grew to 18,429 in 2016, a 92% increase on 1995.
The value of trade carried by air transport in 2017 is expected to be $5.7 trillion, a 4.9% increase on 2015. Air cargo accounts for around 35% of the total value of goods traded globally.
The global spend on tourism enabled by air transport is expected to grow by 5.1% in 2017 to $681 billion.
Supply chain jobs supported by aviation are expected to grow by 3.4% in 2017 to some 69.7 million worldwide.
Airlines are expected to take delivery of some 1,700 new aircraft in 2017, around half of which will replace older and less fuel-efficient aircraft. This will expand the global commercial fleet by 3.6% to 28,700.
Airlines are expected to operate 38.4 million flights in 2017, up 4.9%.
The manner in which international travel and digital entertainment intersect has experienced a massive transformation in the current year. As the volume of international travel continues to rise to unprecedented levels, the technological potential to access a 1xbet giriş from any point in the world has become the benchmark by which the efficacy of a given system or network should be judged. In 2026, more than 65% of international travel hubs have completely integrated standalone 5G connectivity, providing the environment that is required to enable high-stakes sports viewing. This means that regardless of the position that the sports aficionado finds themselves in, at the top of a mountain or at the coast, the nature of the information that flows will remain the same. The modern-day traveler expects nothing but the best, and that includes the manner in which they will be able to engage with the digital hobbies that they have been able to cultivate during the course of the year.
The way in which the experience is felt has also been improved through the efficiency of the software that is used to power the mobile experience. If the user has opted to install the 1xbet apk file on the 2026 flagship device, the user is able to experience the new “Travel-Adaptive” coding that reduces the background data usage by 30% when traveling internationally. This is an important aspect of the experience because the user may find themselves in transit for an extended period of time without the ability to plug in and charge the device. As the statistics show for the first half of the year, the user of the mobile The application is able to experience a 25% reduction in data usage when traveling compared to the user who makes use of the mobile web browser in order to experience the sports entertainment the user has grown accustomed to. It is a more relaxed experience where the main aspect is the thrill of the game.
The Role of Mobile Betting in Modern Tourism
It should be noted that the modern betting process concerning sports is considered to be one of the most effective ways to get entertained during a long flight or when staying at the airport. Mobile betting is considered to be a unique opportunity for a tourist not just to view a sporting event, but also to become an active participant of that sporting event that is taking place on the other side of the world. Thanks to the speed of modern applications, it is possible for a tourist to react immediately to the changes in the score and adjust the predictions accordingly during an excursion or when staying by the pool. Such an event is considered to be an adventure in bright colors.
Apart from the entertainment that such modern platforms offer, they also present a great number of analytical data that allows the tourist to get engaged in the process. One of the main purposes of such tourism is to get satisfaction from the accuracy of one’s prediction, as well as competition. Such platforms pay great attention to the safety issues, reminding the tourist that “betting should be an additional positive experience of your trip.”
Network Benchmarks for the Connected Traveler
The sports enthusiast who is always on the go would find that the line which separates an enjoyable experience from an unenjoyable experience of sports betting is measured in mere milliseconds. In fact, the world average of mobile latency for tourist destinations has been reduced to mere 16ms in 2026, which is an important consideration for sports enthusiasts who enjoy sports betting for games such as tennis and basketball.
The table below shows the current standards for mobile network performance for the most prominent tourist destinations around the world:
| Network Metric | Global Average 2026 | Satisfaction Rate | Primary Use Case |
| Download Speed | 195.6 Mbps | 88 percent | High-definition streaming |
| Signal Latency (5G) | 16 ms | 92 percent | Real-time Live updates |
| Roaming Cost | 1.15 USD / GB | 74 percent | Continuous background sync |
| App Load Time | 1.8 seconds | 85 percent | Rapid market entry |
| Connection Stability | 99.8 percent | 91 percent | Uninterrupted viewing |
As per the latest research findings on the subject by the research company named Statista, it has been identified that the need for high-speed mobile data for the tourists is rising by an increase of 40%. This is mainly because the tourist would like to experience a form of ‘multi-layered’ entertainment. The definition of ‘multi-layered’ implies that the sports enthusiast would like to view a live streaming event, access his or her social media account, and place a friendly bet on the event simultaneously. Therefore, as long as this infrastructure is in place, this would thrive.
The Evolution of Mobile Betting as Travel Leisure
In the year 2026, mobile betting for sports would be considered a fun way of spicing up the entire travel experience. This is because it would be able to provide a new dimension to a sporting event that an individual is witnessing while traveling in a pub or a train. It would be able to provide individuals with a way of having a personal stake in a world event. Thus, the hours that an individual spends in a train or an airport would be able to pass quickly with a fun way of gamification of sports viewing.
In the year 2026, modern mobile betting has turned out to be a full-fledged way of socializing for travelers. This is because many individuals use the co-watching features of the application and group betting features of the application in order to compete with their friends back home or connect with other sports fans of the sport that they are watching while visiting pubs around the world. It is because it would be able to provide individuals with a new dimension of traveling. It is no longer just about traveling to a new destination; it is about becoming part of a new world community where talking about the probabilities of winning or forward performance of a team is considered to be the universal language of communication. It is no longer just about betting; it is about getting the rhythm of the world of sports wherever an individual is located—from the cozy European roads to the futuristic cities of Asia.
Popular Mobile Sports Activities for People on the Move
Individuals who travel in 2026 have managed to come up with their own ways of having fun through sports without missing out on their sightseeing targets. There has been a new trend of “micro-betting,” which refers to betting on a game that will happen in the near future.
The following is a list that points out the best mobile sports-related activities for traveling individuals for the current year:
- Predicting the total points scored in one quarter of the basketball game while in short transit stops.
- Tracking the sports player that is most likely to score the next goal in the football game while in a cafe.
- Determining the total number of games in one set in the tennis game while in downtime at a resort.
- Viewing the percentage of ball possession for a particular team through the use of graphical overlays.
- Predicting the exact number of free throws scored in a game while in downtime at a hotel.
The activities will be perfect for the downtime in the traveling schedule as they will provide the individual with a dose of excitement without making the individual glued to his/her screens for hours. This way, the individual will be able to appreciate the digital world as well as the beauty of the world he/she is in.
Security and Responsible Habits Abroad
However, with the introduction of mobile transactions during travel, the factor of security has been regarded as a major factor. In fact, in the current scenario, 94% of the total mobile sports platforms provide multi-factor biometric authentication. This means that the security of your account is ensured even when you are accessing the internet through a public source of internet connectivity, such as Wi-Fi. Moreover, the majority of the platforms provide “Smart Limits” that are location and time zone-based. In this way, an individual can develop a habit when they are traveling. All of this has been done in a way that the overall experience remains a positive one. This is because betting is something that an individual chooses for his or her entertainment.
The innovations in the field of technology, such as the introduction of technology through eSIM, allow an individual to remain connected. This means that an individual does not face “bill shock” when they are using roaming.
By Aduragbemi Omiyale
The federal government has directed the Federal Airports Authority of Nigeria (FAAN) to adopt a hybrid payment system that accommodates both cash and card payments at all airport access gates with effect from Friday, March 13, 2026.
This system is to be used until the introduction of a fully automated or electronic system at all access gates at the airports in order to fully and eventually eliminate cash payments.
In a statement on Tuesday, the Minister of Aviation and Aerospace Development, Mr Festus Keyamo, disclosed that these decisions were reached after reviewing the initial implementation and the operational challenges observed.
FAAN had earlier commenced an electronic payment system last week, but it was suspended by President Bola Tinubu due to the traffic gridlock it created.
Yesterday, the Aviation Minister met with officials of FAAN and senior officials of the Ministry, and it was agreed to engage concessionaires for the introduction of a fully automated or electronic system.
Mr Keyamo, in the statement signed by his Special Adviser on Media and Communications, Mr Tunde Moshood, said motorists who already possess FAAN Go Cashless Cards may continue to use them until further notice.
It was also resolved that other electronic payment options, including POS terminals and other approved digital channels, will also remain available, while members of the public and road users were encouraged to obtain and use the FAAN Go Cashless Card as the organisation continues to enhance and fully optimise the cashless payment system.
By Aduragbemi Omiyale
The cashless airport toll gate payment system introduced by the Federal Airports Authority of Nigeria (FAAN) has been suspended by President Bola Tinubu.
At the Federal Executive Council (FEC) meeting held on Wednesday in Abuja, Mr Tinubu directed the agency to immediately return to the status quo, pending the development of a more efficient system.
The Minister of Aviation and Aerospace Development, Mr Festus Keyamo, who announced the suspension after the FEC meeting today, said the action followed gridlock that trailed the new system, which caused passengers to miss their flights.
FAAN had commenced the cashless payment system for airport toll gates across the country in a bid to block revenue leakages and adopt an electronic payment system instead of cash.
But this policy caused traffic gridlock at several airports, especially those in Lagos and Abuja.
“Mr President was very concerned about the welfare of Nigerians and the fact that most Nigerians were losing their flights, missing their flights.
“So, Mr President, out of empathy, directed today that we should suspend the present system because it creates a lot of gridlock, and Nigerians are suffering as a result of it,” Mr Keyamo informed newsmen.
“The major reason why Mr President took this decision is to eliminate the present gridlock that we are experiencing, especially at both the Lagos and Abuja toll gates leading to the airport.
“That’s the major reason, not that the President is happy with the cash system,” he added.
The Minister further said the President directed stakeholders to “go back and, if possible, even engage the private sector to ensure that we establish an electronic system by which we can collect these revenues for the federal government at the gates, to the extent that it will not create the gridlock that we are having right now.”
“We are going to do a hybrid system whereby we can collect cash temporarily and, of course, use the cards that they have collected temporarily for now,” Mr Keyamo added.
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