Board forecasts Canadian airline profits to fall 27%

employment in Canada and the United States.

The Conference Board said fuel, which accounts for about a third of airline costs, will rise while employee costs will grow as new or expanded routes will require the hiring of 6,000 more people over the next five years.

By 2022, the industry is expected to generate about $1.37 billion of pre-tax earnings on nearly $38 billion of revenues.

The Conference Board said a continued expansion of domestic and international capacity has The loonie’s softness helped boost international air travel in 2017, when a record 5.7 million U.S. residents flew to Canada last year.

Most of the gains in U.S. travellers were serviced by Canadian airlines, which now supply seats for two-thirds of U.S. visitors.

The number of non-U.S. international travellers increased to a record 6.7 million last year. While Europeans remained the largest group, more visitors from Asia, particularly China and India, have narrowed the gap. Canadian airlines added 5.9 per cent more dollar will remove some of the incentive for foreign travellers.

Global airline net profits are expected to reach a record US$38.4 billion this year, defying the traditional cyclical downturn that comes about every eight years, says Julie Perovic, the senior economist for the International Air Transportation Association.

Robust operating margins in North America have contributed about half of the industry’s profitability over the last couple of years.

The last downturn was in 2009, around the time of the global financial crisis, but she said there probably isn’t a need for concern.

“We’ve seen quite strong global economic growth or GDP over the past couple of years and we feel that that is going to continue into 2018 and it’s going to help us sustain further growth in air travel markets,” she told an IATA conference this week in Montreal.

Global demand is expected to slip to around six per cent from 7.5 per cent in 2017. Still, she said rising costs are a key concern. Jet fuel is expected to increase a little more than crude to about US$74 per barrel from US$65 last year. Non-fuel costs, including labour, are forecast to more than double from two per cent in 2017. uses Comcast’s X1 platform, has completed its employee trial and is on track for a full customer launch later this year. The product is a “truly premium service” that Natale said is part of Rogers’ smart home strategy. Shaw already launched a TV product using Comcast’s X1 product. In its latest results, Shaw said it hasn’t attracted as many customers as expected given the changing television market.

Rogers’ media division posted a strong quarter thanks to the Toronto Blue Jays, with adjusted earnings of $23 million up from a $30-million loss in the same period last year. Revenue increased 12 per cent on a higher distribution from Major League Baseball and higher Sportsnet subscription revenue.

Rogers will hold its annual general meeting in Toronto on Friday morning.