European airlines to see $11.5 billion in profits
Announced capacity increases of 5.5% trail the expected 6.0% growth in demand in 2018 supporting a strengthening of the region’s performance.
European airlines are benefiting from a strong economic recovery in home markets, including Russia, a rebound from the terrorism events of 2016, and some consolidation following the failure of several regional airlines.
The results of these developments are evident in the continent achieving the highest average passenger load factor in 2017 to date—84.3%.
Strong transatlantic demand is also supporting this performance, although new market entry is intensifying already stiff competition.
And an early resolution to Brexit uncertainties is needed for airlines to plan and market their flying programs. ■