Economic development worldwide is getting a significant boost from air transport this year due to increasing connection between cities, the International Air Transport Association (IATA) said in its mid-year report.
According to IATA, unique city-pair connections are expected to reach more than 19,000 this year.
“The wider economic benefit is being generated by increasing connections between cities—enabling the flow of goods, people, capital, technology and ideas—and falling air transport costs,” the IATA said on the report.
The price of air transport continues to fall, a boost to trade flows, while increasing in air traffic accelerates hiring by airlines. The IATA said total employment by airlines will reach 2.78 million this year, up 4 percent from 2.65 percent in 2016.
“The jobs being created are not just for their airline employers; they are also highly productive for the economies in which they are employed,” according to IATA.
“Air transport is vital to manufacturers’ trade, particularly trade on components which is a major part of cross-border trade today,” the IATA said, noting that the value of international trade shipped by air will reach $5.9 trillion this year.
Estimates by IATA place the strongest financial performance will come from North America, followed by Asia-Pacific and Europe. The average net profit per passenger in North America is forecast to be $16.32, while the bottom line in Europe will be $6.94 and $4.96 in Asia-Pacific.