‘The industry’s fortunes are improving,’ IATA chief Tony Tyler said at the umbrella body’s Geneva base.
‘Today we are raising our global profit outlook for this year to $12.9 billion (9.4 billion euros). And we see that increasing to $19.7 billion next year,’ he told reporters.
The figure for 2013 was $1.2 billion better than a forecast issued in September, and $3.3 billion over the previous prediction for 2014, he noted.
‘This is being led primarily by a slight fall in the high price of oil and the positive impact that mergers and joint ventures are having, generating better connectivity for passenger and driving efficiency,’ Tyler said.
If the 2014 forecast turned out to be accurate, it would be the sectors highest-ever profit figure, he underlined.
But it is shared among hundreds of airlines. They will take in $743 billion in revenues by transporting some 3.3 billion passengers,’ he noted, saying that the sector would hardly be rolling in cash.
‘Even a simple division of the profit by the number of passengers will quickly show that the industry will be taking a little less than six dollars per passenger carried,’ he explained.
IATA forecast that the average rate of profitability of the globe’s airlines should reach 2.6 per cent in 2014, up from 1.8 per cent this year and 1.1 per cent in 2012, when the sector turned a profit of $7.4 billion.