This would be the 10th consecutive year of profitability and the fifth consecutive year in which airlines deliver a return on capital that exceeds the industry’s cost of capital, creating value for investors.
Alexandre de Juniac, IATA’s director general and CEO, said that expectations for a drop in profitability in 2019 had been offset by a sharp fall in oil prices and solid GDP growth prospects.
He said that while this meant cautious optimism for at least another year, there are downside risks as economic and political environments remain volatile. Carriers in North America continue to lead on financial performance, accounting for nearly half of the industry’s total profits.
by Dan Booth