IATA Forecasts Profitable Airline Industry in 2019
The International Air Transport Association (IATA) forecasts the global airline industry net profit to be $35.5 billion in 2019, slightly ahead of the $32.3 billion expected net profit in 2018.
This would be the 10th consecutive year of profitability and the fifth consecutive year in which airlines deliver a return on capital that exceeds the industry’s cost of capital, creating value for investors.
Alexandre de Juniac, IATA’s director general and CEO, said that expectations for a drop in profitability in 2019 had been offset by a sharp fall in oil prices and solid GDP growth prospects.
He said that while this meant cautious optimism for at least another year, there are downside risks as economic and political environments remain volatile. Carriers in North America continue to lead on financial performance, accounting for nearly half of the industry’s total profits.
by Dan Booth
