LONDON: Lower oil prices are expected to boost profits at Middle East airlines in 2019 as a decade of double-digit growth starts to slow.

The 2019 industry outlook from the International Air Transport Association (IATA) is based on an anticipated average oil price of $65 per barrel — lower than the $73 experienced in 2018.

Middle East airlines are expected to report an $800 million net profit in 2019, compared to $600 million in 2018, IATA said on Wednesday.

“We had expected that rising costs would weaken profitability in 2019. But the sharp fall in oil prices and solid GDP growth projections have provided a buffer,” said IATA CEO Alexandre de Juniac. “So we are cautiously optimistic that the run of solid value creation for investors will continue for at least another year.”

Lower oil prices are welcome relief for airlines whose aviation fuel bill can account for a third of overall costs.

IATA said jet fuel prices are expected to average $81.30 per barrel in 2019, lower than the $87.60 per barrel average for 2018.

Middle East carriers have been hurt by a slowdown in regional spending, conflict and overcapacity.

That is expected to lead to a slowdown in capacity growth — projected at 4.1 percent in 2019 compared to 4.7 percent in 2018.