African airlines to see profit in 2014

African airlines are expected to post a $100m profit this year, reversing the $100m loss in 2013, director general and chief executive of the International Air Transport Association (Iata), Tony Tyler, said last week. He said that the global airline industry remained on track to deliver a second consecutive year of improved profitability. This is despite a slight downward revision to its industry outlook for 2014 to an industry profit of $18.7bn from the previously forecast $19.7bn. “Economic growth and network development by a handful of African airlines is leading growth. But profitability is far from being evenly spread across the continent. While African governments are committed to achieving world-class safety levels by 2015, the continent suffers from the lack of a holistic vision for the development of connectivity across its vast distance,” said Tyler. Poor regulation, high infrastructure costs and an array of taxes and charges continue to hinder development on the continent. “And intra-Africa connectivity is hampered by market access restrictions despite the commitments to liberalise recorded in the Yamoussoukro Declaration,” he added. On a global scale cargo demand is showing the biggest improvement. Instead of the previously projected 2.1% growth, it now appears that air cargo is headed for 4.0% growth in 2014. And the yield decline will be moderated from the previously forecast 2.1% fall to a decline of 1.5%. "Trading conditions remain challenging, but positive macro-economic trends are providing a much-needed boost," he said. INSERT & CAPTION Economic growth and network development by a handful of African airlines is leading growth. – Tony Tyler