IATA warns of impact of EM currency crisis

Association forecasts 4.4% growth annually in air passenger journeys

The International Air Transport Association (IATA) yesterday warned about the impact of the recent currency crises in emerging markets on the aviation sector, which it described as “facing more adverse economic conditions.”

Emerging markets including Turkey, India, Argentina, Indonesia, and South Africa, among others, recently saw their currencies plunge amid domestic political and monetary challenges and as the US dollar gained strength. “In all markets, the costs are in US dollar, and the revenues are in their local currencies …” said Alexandre de Juniac, IATA’s director general and CEO. De Juniac’s comments came during a media call to discuss IATA’s latest report, which forecasts the number of air passenger journeys to increase globally at an average rate of 3.5 per cent each year over the next 20 years.

In the Middle East specifically, the annual growth rate in air passenger journeys is expected to be 4.4 per cent. Meanwhile, the rate will be highest in Asia Pacific, at 4.8 per cent, followed by Africa at 4.6 per cent. Europe will see the slowest growth rate of 2 per cent, as per IATA’s forecasts.