IATA director general and CEO Tony Tyler addressed (16-Oct-2012) the World Passenger Symposium in Abu Dhabi, calling for travel agents, airports, air navigation service providers, regulators, manufacturers, ground service providers, global distribution systems (GDSs) and other aviation stakeholders to work together to make each passenger journey as safe, secure, seamless and convenient as possible. Mr Tyler said meeting the service needs of an increasing number of passengers will require innovation and technology presents new service possibilities almost daily. What matters most is "that we can deliver a compelling value proposition to our customers". Mr Tyler said ending the commoditisation of air travel "will allow us to create more retailing opportunities—providing value to customers, increasing revenues and reducing costs". [more - original PR]
IATA calls for stakeholder collaboration and end of commoditisation of air travel
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CAPA global airline financial outlook
Operating margin to reach new high in 2016, but this may signal a subsequent downturn. CAPA’s global airline operating margin model indicates that the industry was more profitable in 2015 than it has been for almost five decades. Moreover, the model predicts that world airline operating margins will rise further above previous historic peak levels in 2016. These new levels of profitability are mainly thanks to the low oil price environment, coupled with strong demand growth in spite of global economic growth rates that are far from exceptional.
Much of the industry is also benefiting from a period of relative capacity discipline. New revenue sources may also be helping, although their role in airline profitability is still emerging.
The macroeconomic and geopolitical backdrops provide the main risks to this forecast. Beyond that, the biggest challenge for the industry will then be to try to sustain margin levels, rather than to allow a peak to be followed by a rapid downturn, as has always happened in the past. But downturns can play a positive role in industry development, possibly even stimulating consolidation.
Global airline financial outlook
Operating margin to reach new high in 2016, but this may signal a subsequent downturn