UAE airlines could see profits shrink this year, the director general and chief executive of the International Air Transport Association (IATA) has told the media.

“The UAE carriers will have a year that is probably below 2016,” Alexandre de Juniac told reporters in Abu Dhabi.”

IATA previously said Middle East airlines would see profits fall from $900 million in 2016 to $300 million in 2017, partly due to high capacity and limited demand growth.

The UAE is home to several major carriers: Emirates, the world’s largest long-haul airline, as well as rapidly expanding Etihad Airways and low-cost carriers flydubai and Air Arabia.

Emirates’ half-year profit fell 75 percent and the airline’s president Tim Clark has predicted a tough year ahead, while Air Arabia and flydubai both reported lower full-year profit for 2016.

Etihad has not reported its results to date, however, the airline is known to be reviewing its workforce.

Looking to global trends and how they might impact the Middle East, de Juniac said the growth of low-cost, long-haul carriers was “starting to accelerate” in Europe and Asia and airlines based on this model would start operating in the region sooner rather than later.