Recent terrorist attacks and increased pressure on yields have dampened hopes among airline chiefs for improvements in profitability over the next 12 months. That's according to a survey conducted earlier this month by IATA, which compiled the views of airline CFOs and heads of cargo operations. While the latest financial results from Q1 continue to indicate a robust start to the year for industry profitability, July's survey suggests that profitability fell slightly in year-on-year terms during Q2. That airline CFOs and cargo heads do not expect further improvements in profitability over the next 12 months, however, does not signal an imminent drop in profitability, IATA said. The latest forecast issued by the IATA last month envisaged the global airline industry this year would pull in US$39.4b in net profit, up from $35.3b in 2015. <br/>
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The air traffic control company that charges airlines for taking off, landing and flying through Canadian air space will charge them less for their services starting in September, a move that could save airlines up to C$100m in the coming year. Nav Canada said Monday that it will cut its service charges by an average of $7.6 starting Sept 1, 2016. As a non-profit, Nav Canada is mandated to only charge enough to cover its cost and maintain the system in a safe and effective way. Recent efficiencies have warranted the cuts in what the company charges its customers. "Strong traffic growth, coupled with cost controls and targeted strategic investments in the air navigation system, have put us in a position to deliver savings to customers," CE Neil Wilson said. <br/>
Airport staff in Rio de Janeiro’s Santos Dumont had never seen anything like it. Just 18 days before the start of the Olympics, security lines were so long they snaked around the entire second floor of the terminal. The reason for the chaos at the city’s domestic airport centered on new security guidelines starting Monday that require passengers to go through checks as though they were flying international. Travellers in Brazil are not usually required to remove coins, belts or separate laptops for domestic flights. While aviation agency Anac said the measures weren’t connected to the Olympics, they were announced Friday after a terror attack in Nice prompted Brazilian authorities to promise stricter security procedures during the games, which begin Aug. 5. <br/>
Hong Kong International Airport (HKIA) has reported a 5.1% rise in passenger numbers for the first 6 months of 2016, compared to the same period in 2015. It also registered a 2.6% increase in flight movements to 204,750 over the same period compared to the 2015 figures. The total number of passengers handled by HKIA between January and June 2016 was 35.2m, with 5.9m in June 2016—up 5.4% compared to the same month in the previous year. HKIA management said the recent growth in passenger traffic “was mainly driven by Hong Kong resident travel, which grew 15% compared to [June] last year.” “Looking towards the second half of the year, passenger traffic is expected to grow steadily,” airport management said. Passenger traffic saw the most gains in numbers from North Asia, Southeast Asia and mainland China regions. <br/>
The Malaysian Aviation Com-mission (Mavcom), set up in March, is exploring the possibility of charging a small amount of up to MYR1 (US$.25) per airline passenger to fund its operations, aviation executives said. Other sources of income include charging for licences. Sources said the passenger service charges (PSC) for travellers had also come under review. “At this stage it is still exploring and a decision has to be made at some point. Since it began, it had been funded by the govt," an airline executive said. Last year 83.5m passengers travelled through the many airports in Malaysia and this year the figure will be higher, as demand for air travel in this region remains buoyant. Mavcom regulates economic and commercial matters related to civil aviation in the country. <br/>
A sharp drop in the price of domestic air fares kept inflation well below target, despite a recovery in petrol prices. Statistics New Zealand announced Monday that the consumer price index rose by 0.4% in the June quarter, meaning annual inflation also remained at 0.4% for the year to June 30. Much of the gain came from a recovery in petrol prices, which rose 5.3% in the 3 months to June 30. Petrol, which accounts for about 5% of the overall inflation basket, dropped significantly in both the December and March quarters. But the recent gains in petrol were offset by drops elsewhere, including a 9.9% drop in domestic air fares. Domestic air fares are down 14% since the start of the year. Figures from the department showed that domestic air fares are now almost exactly what they were back in mid-2006. <br/>