Wednesday, December 12, 2018

Airlines seem clocking $35.5 bn net profit in 2019: IATA

The global airlines' industry is projected to report a net profit of USD 35.5 billion in 2019, remaining profitable for the tenth straight year, helped by lower oil prices and solid economic growth, IATA said on Wednesday.

The grouping of around 290 airlines worldwide also said that the passenger numbers are expected to rise to 4.59 billion next year from 4.34 billion in 2018.

Releasing its latest Global Economic Outlook report, the International Air Transport Association (IATA) noted that the net profit of the airline industry is projected to touch USD 35.5 billion next year, higher than USD 32.3 billion expected for 2018.
The 2018 projection has been revised downwards from USD 33.8 billion forecast in June.

In 2019, the average net profit per departing passenger is projected to be USD 7.75 compared to USD 7.45 for this year.

"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. So, we are cautiously optimistic that the run of solid value creation for investors will continue for at least another year," IATA Director General and CEO Alexandre de Juniac said.
12/12/18 moneycontrol
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