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Passenger demand growing

Passenger demand growing
12 Dec 2013

Demand for commercial airline services is growing at around 6%, according to the latest figures.

Passenger numbers are expected to hit 3.1bn this year and then rise to 3.3bn in 2014, the International Air Transport Association (IATA) has predicted.

'Overall, the industry's fortunes are moving in the right direction ... Passenger demand is expanding in the 5-6% range - in line with the historical trend,' commented Tony Tyler, IATA's director-general and chief executive. 

As a result of this and falling prices for jet fuel, airline profits are expected to reach $12.9bn (£7.9bn) by the end of 2013 and grow further to $19.7bn in 2014. These figures have been significantly revised upwards from a forecast given only in September, owing to a drop in jet fuel prices and 'improvements to the industry's structure'.

The IATA added that competition between airlines for passengers was 'intense', with yields (revenue per passenger mile) expected to fall by 0.6% in 2014.ADNFCR-408-ID-801671891-ADNFCR

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