Airlines have ‘hit a few speed bumps’
Airlines are heading for their second best year this century despite a slow-down in growth, according to international trade body IATA.
It forecast that collectively airlines would make a net profit of $16.4 billion next year, making 2014 the second strongest year after the record breaking $19.2 billion in 2010.
However, it has revised its forecast for this year down to $11.7 billion on revenues of $708 billion after seeing slower growth than it anticipated in June when it projected a profit of $12.7 billion.
"This reflects the impact on demand of the oil price spike associated with the Syrian crisis and disappointing growth in several key emerging markets," it said.
Performance this year is still considerably better than the $7.4 billion net profit of 2012. "Overall, the story is largely positive," said IATA director general Tony Tyler.
"Profitability continues on an improving trajectory. But we have run into a few speed bumps. Cargo growth has not materialized. Emerging markets have slowed. And the oil price spike has had a dampening effect. We do see a more optimistic end to the year. And 2014 is shaping up to see profit more than double compared to 2012."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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