IATA's e-ticketing project ready by May 2008
Surekha Galagoda reporting from Switzerland
The e-ticketing (ET) project initiated by the International Air
Transport Association (IATA) will be completed by end May 2008.
According to the IATA survey on ET in October, Airlines said that
they are projecting 93% ET by the end of this month and 97.7% by end May
2008. Airlines in all regions hope to exceed 95% by the deadline set
with the exception of Africa 93% and CIS 87%.
IATA Director General and CEO Giovanni Bisignani addressing the
Global media day in Geneva, Switzerland said that the IATA estimates a
global industry profit of US 5.6 bln in 2007 and a drop to US 5 bln in
2008.
He said that the outlook for 2008 remains unchanged at US 5.6 bln.
Higher oil prices were offset by strong traffic growth (5.9% for
passenger traffic) and even stronger revenue growth of 8.4%.
Bisignani said that for the first time since 2000 they are profitable
and it is good news, a lot of hard work by the airlines. Since 2001 non
fuel unit costs dropped 16%, labour productivity is up 64% and sales and
marketing unit cost decreased by 25% - yet with a 1.1% margin the
bottomline is peanuts.
IATA sharply revised, downward its outlook for 2008 to US $ 5 bln
from the previously forecast US 7.8 bln. The spike in fuel prices is
expected to add US 14 bln to the industry's fuel bill, driving it up to
US 149 bln.
The broadening impact of the credit crunch is expected to slow
revenue growth to 4.7% and traffic growth to 4%. Simultaneously capacity
expansion is expected to accelerate in 2008 with an increase in aircraft
deliveries to 1,281 up from 1,041 in 2007.
He said that the challenges will be tougher in 2008. A favourable
economy, environment and effective efficiency measures helped mitigate
the impact of high fuel prices and underpinned profitability
improvements.
However, with the international credit crunch the situation is
changing. The peak of the business cycle is over and we are still US 190
bln in debt and therefore could be heading for a downturn with a little
cash in the bank to cushion the fall, said Bisignani.
[email protected]
|