The fall in oil prices as well as rising passenger numbers could help deliver record profits this year for the world’s airlines.
IATA has announced an upward revision of its 2015 industry outlook to a $29.3 billion profit, this is compared with $16.4 billion profit in 2014.
The airline trade body said with expected revenues of $727 billion, the industry would achieve a four per cent profit margin.
However, speaking at IATA’s AGM and World Transport Summit in Miami yesterday, CEO Tony Tyler warned many airlines were still struggling despite the oil price fall.
“Let’s keep things in perspective. Apple, a single company, earned $13.6 billion in the second quarter of this year. That’s just under half the expected full-year profit of the entire airline industry,” said Tyler.
“We don’t begrudge anyone their business success. But it is important for our stakeholders, particularly governments, to understand that the business of providing global connectivity is still a very tough one,” he added.
IATA’s outlook is based on an average Brent crude oil price of $65 a barrel, which is 36 per cent below the 2014 price of $104. It also expects passenger numbers to grow 6.7 per cent this year compared with 2014.