IATA reiterates USD39.4bn profit outlook for global airline industry, but warns of potential risks
IATA DG and CEO Alexandre de Juniac reiterated (22-Sep-2016) the association's forecast for a collective airline industry net profit of USD39.4 billion for 2016, which would be a record for the industry. Potential risks to this profit are identified as:
- A sudden rise in oil prices; an increase in terrorism aimed at aviation and air travel;
- A sharp economic downturn;
- A retreat from the principles of free trade by one or more major economies.
Mr de Juniac commented that "it would be unrealistic" to expect the current "good times" to last forever for the aviation industry, although he is "not predicting an end to the good times". He noted that profitability is not evenly spread, with significant variations among regions. He also called for "speed and innovation" to enable aviation to "continue to deliver its vast social and economic benefits".
IATA: "Uncertainty is ahead of us. I am a big believer in speed and innovation. We cannot know the future. But we need to be prepared to react quickly when the environment changes. That’s not easy for any business—and it is a real struggle for process-driven industries like air transport," Alexandre de Juniac, DG and CEO. Source: IATA, 22-Sep-2016.