Doha: The International Air Transport Association (IATA) said on Monday it expects airline companies to record combined net profits of $18-billion (R191bn at R10.66/dollar) this year.
Revenues were forecast to reach $746-billion (R7.9 trillion) IATA director general Tony Tyler said in Doha, pointing out that net margins stood to average 2.4% only.
"It sounds impressive. But the brutal economic reality is on revenues of $746-billion dollars we will earn an average net margin of just 2.4%," he said.
This amounted to less than $6 per passenger, added Tyler, who was speaking at an IATA-organised annual conference of the airline industry in the Qatari capital.
"The good news is that airline profits are improving. The average return on invested capital today is 5.4% - up from 1.4% in 2008," said Tyler.
"But we are still far from earning the seven to eight percent cost of capital that investors would expect," he added.
03/06/14 news24
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Revenues were forecast to reach $746-billion (R7.9 trillion) IATA director general Tony Tyler said in Doha, pointing out that net margins stood to average 2.4% only.
"It sounds impressive. But the brutal economic reality is on revenues of $746-billion dollars we will earn an average net margin of just 2.4%," he said.
This amounted to less than $6 per passenger, added Tyler, who was speaking at an IATA-organised annual conference of the airline industry in the Qatari capital.
"The good news is that airline profits are improving. The average return on invested capital today is 5.4% - up from 1.4% in 2008," said Tyler.
"But we are still far from earning the seven to eight percent cost of capital that investors would expect," he added.
03/06/14 news24
