Thursday, December 30, 2010

Expectations.... Airlines in 2011

As 2011 approaches one wonders how will the industry cope after a great 2010 (15.1 Billion USD net profit). One thing for sure, we need to manage expectations.

- 2011 will probably not be as profitable as this year
- Air fares are going to rise again around 10% to 15% due to tighter capacity control and rising fuel prices
  (estimated at $100 a barrel).
- Ancillary fees are here to stay and are expected to spread beyond the USA and Europe.
- Traffic and revenues will be adversely affected due to a soft US economic recovery and a looming Euro
   Zone debt crisis.
- MENA/GCC will lead the industry in growth
- LCC segment in MENA/GCC will continue to grow and probably reach a 10% to 12% market share

I wish you all a Happy and Prosperous 2011

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