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A Qatar Cargo Boeing 777F plane as well as also an American Airlines Airbus 321 prepare for take off at Los Angeles International Airport in Los Angeles, California.
North American airlines are Just as before primed to record the highest profits inside the industry.
The International Air Transport Association (IATA) made the claim in its latest forecast of the global airline industry, published Tuesday. IATA is usually a trade body in which claims to represent more than 80 percent of air traffic.
In its report, the association said total airline industry net profit in 2018 will rise to $38.4 billion, an increase of around 11 percent on the projected figure for 2017.
The bulk of the profit generated next year will come via North America where, according to IATA, airlines inside the region are forecast to record a combined net profit of $16.4 billion.
In its statement, IATA said the U.S. figure, up via a forecast $15.6 billion in 2017, actually represents a slight fall away in market share.
“North American airlines have generated more than half of the industry’s profits produced inside the past three years, yet rising cost pressures have slowed further improvements,” the report said.
IATA has estimated 2018 airline capacity growth to be 3.4 percent for North America, just shy of the region’s forecast traffic growth of 3.5 percent.
in which noted in which U.S. airlines have been hit hardest by rising fuel prices due to previously employing a low hedging strategy, in comparison to various other parts of the planet. Hedging is usually when airlines fix the future cost of their fuel to take away the risk of cost swings.