IATA: 2016 outlook so far unchanged, despite series of financial shocks

IATA DG and CEO Tony Tyler said (22-Feb-2016) that while 2015 ended with "optimism", 2016 has "opened with a series of financial shocks". IATA's outlook for airline profitability remains unmodified, at a projected USD36 billion in profit with a new margin of 5.1%. According to Mr Tyler, more significant than the positive profit is the fact that "airlines are starting to provide a normal return to their investors at the aggregate level". This is important "because we need investors to fund the industry's expansion", with a 2016 average cost of capital is estimated at 7% and airlines collectively are set to deliver a return on capital of 8.6%. [more - original PR]