Airline per passenger profit less than the price of a sandwich
Airlines make an average of around $4 per person, less than the cost of a sandwich, according to the latest report from IATA.
Tony Tyler, director general and CEO of the International Air Transport Association, made the comparison as he unveiled the latest forecast for the industry in Cape Town.
He said airlines’ margins remain weak, even though IATA has upgraded its global outlook for the industry to a $12.7 billion profit in 2013, $2.1 billion better than the $10.6 billion profit projected in March of this year.
"This is a very tough business. The day-to-day challenges of keeping revenues ahead of costs remain monumental. Many airlines are struggling," he said.
While revenues are expected to total $711 billion this year, the net profit margin is expected to be 1.8%.
"(This is) indicative of the characteristically razor thin profits of the airline industry, even this small margin will make 2013 the third strongest year for airlines since September 11 2001," said IATA.
Qatar Airways will host the 70th IATA AGM and World Air Transport Summit.
The event will take place in Doha from June 1-3, 2014.
Ian Jarrett
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