Page 22 - Caribbean-Central America Profile 2018

REGIONAL

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

TRANSPORTATION

Economic development worldwide is getting a above trend despite a sluggish world economy, supply chain, and the jobs generated as spending
significant boost from air transport. This wider are forecast to remain strong in 2017 as stronger ripples through the economy. These ‘supply
economic benefit is being generated by increasing economic growth offsets the drag from the rise chain’ jobs around the world are estimated to
connections between cities - enabling the flow in oil prices. Falling travel costs have been rise to 69.6 million in 2017.
of goods, people, capital, technology and ideas adding several percent points to RPK growth
The strongest financial performance is being
- and falling air transport costs. The number of over the past several years. The average return
unique city-pair connections is expected to reach fare (before surcharges and tax) of $353 in 2017 delivered by airlines in North America. Net post-
more than 19,000 in 2017, almost double the is forecast to be sixty four percent lower than in tax profits will be the highest at $15.4 billion
connectivity by air twenty years ago. Consumers 1996, after adjusting for inflation. in 2017. That represents a net profit of $16.32
per passenger, which is a marked improvement
will see a substantial increase in the value they
Air transport is vital for manufactures trade, from just four years earlier. Net margins,
derive from air transport, including a further
reduction in what they pay, after allowing for particularly trade in components which is a forecast at seven percent, are down from the
inflation. New destinations are forecast to rise by major part of cross border trade today. IATA previous two years, though not by much. The
four percent this year. forecast that the value of international trade limited downside has been underpinned by
shipped by air in 2018 will be $5.9 trillion. consolidation, helping to sustain load factors
The International Air Transport Association Tourists travelling by air in 2017 are forecast to (passenger + cargo) close to sixty four percent,
(IATA) expect one percent of world GDP to spend $685 billion. Another impact on the wider and ancillaries, which limits the impact of higher
be spent on air transport in 2017, totaling $776 economy comes through the influence increased fuel costs, keeping breakeven load factors close
billion. RPKs, which have been growing well airline activity has on jobs in the sector, in its to fifty six percent next year.

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