Abu Dhabi: Airlines in the UAE and the broader Gulf Cooperation Council (GCC) region are expected to see a decline in profitability this year compared to 2016, the head of the International Air Transport Association (Iata) said on Tuesday.
“We expect year that will be probably below 2016 and below 2015, so not a very positive year for Middle East carriers, due to the capacity and the pressure on the yield. The UAE carriers will have probably a year that is below 2016,” said Alexandre de Juniac, director-general and chief executive officer of Iata.
Iata earlier forecasted that the global aviation sector will see profitability drop to just below $30 billion (Dh110.2 billion) in 2017 from $35.6 billion in 2016.
He said Iata’s forecast for such a slowdown was based on performance indicators that include the International Energy Agency’s forecast for oil prices being around $55 a barrel in 2017.
