With a projected loss in Africa overall....how is our premium return working? ( from the past Aviation week)


Middle Eastern carriers have to prepare for tougher market conditions, given their large exposure to the weakening European long-haul markets. IATA now sees them reaching a $300 million profit next year, down from its previous $700 million guidance. Latin America will amass $100 million in profits, while Africa faces $100 million in combined losses, the association projects.

“The growth rate of premium traffic is slowing,” says Lobbenberg. While it is still positive, the trend is coming down. “I think premium traffic is going to decline,” he notes. And with that decline, yields in the critical sector also are expected to come under pressure, hurting the bottom line of major network carriers. “We think the premium carriers are going to struggle quite badly” in Europe, Lobbenberg says.