Printed headline: $35.5 Billion
The net profit for the global airline industry in 2019 is forecast to be $35.5 billion, $3.2 billion more than what was realized in 2018.
The International Air Transport Association (IATA) includes the projection in its semi-annual report aimed at assessing the value of aviation to consumers, the economy and investors.
While growth and demand are expected to slow, the association also anticipates that lower fuel prices will spur a run of profitable years. Coupled with an expected 5% growth in passengers and increased load factors, airlines are projected to net an average of $7.75 per flying passenger in 2019 (or $16.77 per passenger for North American air carriers).
The average estimated pre-tax airfare for this year is $324, 61% cheaper than the same ticket purchased 20 years ago.
“Air travel has never been such a good deal for consumers,” says IATA Director General and Chief Executive Officer Alexandre de Juniac, who revealed the projections at the association’s Global Media Day in December. “Not only are fares staying low, the options for travelers are expanding.”
IATA says 1,300 new direct links between cities were opened last year, growing the number of unique city-pairs served to more than double what they were two decades ago.\