IATA revises industry earnings forecasts


SYDNEY (Centre for Asia Pacific Aviation) - IATA revised its industry earnings forecasts, due to the recent reduction in fuel prices:

  • 2005: (USD6.0 billion loss), down from the USD7.2 billion loss predicted in Aug-05 and based on expectations of an average oil price in 2005 of USD54-55 per barrel;
  • 2006: (USD4.2 billion loss), based on moderating passenger traffic growth from 7.1% in 2005 to 4.5% in 2006;
  • 2007: USD6.0 billion profit, representing an operating margin of around 3%.

“There is now a case for qualified optimism about the industry's financial performance…Fuel prices remain a major risk, but now appear to be on a slow downward trend as global economic growth and demand for oil slows. Returns to airlines are slowly improving, but are far from allowing long-term financial sustainability”, Brian Pearce, Chief Economist, IATA.

News such as this delivered daily to your inbox from the Centre's Asia Pacific Airline Daily. Click the icon below for more information.


Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More