Geneva: The International Air Transport Association (IATA) on Wednesday announced an outlook of a healthier 2015 for the world aviation industry, marked by improved profitability of carriers. It said that airlines will post a collective global net profit of $25 billion in 2015, up from $19.9 billion in 2014.
The positive outlook will provide a breathing space for the Indian aviation sector, which is struggling amidst high operating costs leading to squeezed margins.
Indian airlines lost about $400 million in the second quarter of the present fiscal 2015, according to consulting firm Centre for Asia Pacific Aviation.
“The industry outlook is improving,” said Tony Tyler, Director General and CEO, IATA after sharing the Association’s Economic Performance of the Air Industry report.
“It is a highly competitive industry and consumers will see lower costs in 2015 as the impact of lower oil prices kick in,” he added.
The report expected the full-year average price of oil to be at $85 per barrel. This will bring down the overall fuel expense to $192 billion, down from $204 billion in 2014.
This is significant for Indian companies as fuel costs make up for over 40 per cent of their total expenses. Globally, fuel prices will represent 26 per cent of the total costs in 2015, down from 29 per cent in2014.
10/12/14 Prince Mathews Thomas/Business LIne
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The positive outlook will provide a breathing space for the Indian aviation sector, which is struggling amidst high operating costs leading to squeezed margins.
Indian airlines lost about $400 million in the second quarter of the present fiscal 2015, according to consulting firm Centre for Asia Pacific Aviation.
“The industry outlook is improving,” said Tony Tyler, Director General and CEO, IATA after sharing the Association’s Economic Performance of the Air Industry report.
“It is a highly competitive industry and consumers will see lower costs in 2015 as the impact of lower oil prices kick in,” he added.
The report expected the full-year average price of oil to be at $85 per barrel. This will bring down the overall fuel expense to $192 billion, down from $204 billion in 2014.
This is significant for Indian companies as fuel costs make up for over 40 per cent of their total expenses. Globally, fuel prices will represent 26 per cent of the total costs in 2015, down from 29 per cent in2014.
10/12/14 Prince Mathews Thomas/Business LIne
