IATA Director General and CEO Alexandre de Juniac gives the State of the Industry and Global Economic Outlook address Dec. 8. IATA represents 265 airlines around the globe, accounting for 83% of global air traffic. FAA
IATA Director General and CEO Alexandre de Juniac gives the State of the Industry and Global Economic Outlook address Dec. 8. IATA represents 265 airlines around the globe, accounting for 83% of global air traffic.

Aviation Group Says Last Three Years Were Its Most Profitable Ever

The International Air Transport Association says 2016 profits fell short of previous year’s all-time high due in part to rising oil prices.

According to the International Air Transport Association (IATA) 2017 outlook, the global aviation industry is expected to enjoy its most profitable three years in history, retaining $7.54 for every passenger carried in 2017. Factors keeping the projected 4.1% profit margin short of last year’s all-time high of 5.1% include rising oil prices (expected to account for 18.7% of costs) and a decrease in passenger load factor (down to 79.8% from 80.2% in 2016). In 2017, the industry is expected to add 1,700 new aircraft, expanding the global commercial fleet by 3.6% to 28,700. The report projects operations to top out at 38.4 million flights, an increase of 4.9% over 2016. Globally, airlines have realized eight straight years of profitability.

 

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