IATA upwardly revises 2016 forecast, fifth consecutive year of improving aggregate profits

IATA upwardly revised (02-Jun-2016) its 2016 financial outlook for the global air transport industry to USD39.4 billion, compared to its previous guidance of USD36.3 billion, adding 2016 is expected to be the fifth consecutive year of improving aggregate industry profits. The industry association noted all regions are making a contribution to the USD4.1 billion boost over 2015 profits with improved results with more than half of the industry profits will be generated in North America (USD22.9 billion) while African carriers are forecast to continue generating an overall loss of USD0.5 billion. Details of 2016 forecast include:

• Revenue: USD709 billion, -1.3% year-on-year;
• • Passenger: USD511 billion;
  • Cargo: USD49.6 billion;
• Costs: USD647 billion, -1.9%;
• • Fuel: USD127 billion;
  • Labour: USD153 billion, +6.4%;
  • Non-fuel: USD519 billion;
• Operating profit: USD62.2 billion;
• • North America: USD32.4 billion;
  • Europe: USD10.5 billion;
  • Asia Pacific: USD16.9 billion;
  • Middle East: USD1.8 billion;
  • Latin America: USD0.8 billion;
  • Africa: (USD0.2 billion);
• Net profit (loss): USD39.4 billion;
• • North America: 22.9 billion;
  • Europe: USD7.5 billion;
  • Asia Pacific: USD7.8 billion;
  • Middle East: USD1.6 billion;
  • Latin America: USD0.1 billion;
  • Africa: (USD0.5 billion);
• Scheduled passenger numbers: 3,783 million;
• Passenger load factor: 80.0%;
• Cargo volume: 53.2 million tonnes;
• Passenger traffic (RPKs): +6.2%;
• • North America: +4.0%;
  • Europe: +4.9%;
  • Asia Pacific: +8.5%;
  • Middle East: +11.2%;
  • Latin America: +4.2%;
  • Africa: +4.5%;
• Cargo traffic (RFTKs): +2.1%;
• Passenger yield: -7.0%;
• Cargo yield: -8.0%;
• Employment: 2.61 million, +2.8%;
• Aircraft fleet: 27,390, +3.9%;
• 2017 forecast:
• • RPK: +5.9%;
  • • International: +6.0%;
  • FTK: +3.1%;
  • • International: +3.7%;
• 2018 forecast:
• • RPK: +4.6%;
  • • International: +4.7%;
  • FTK: +3.9%;
  • • International: +4.5%;
• 2019 forecast:
• • RPK: +4.8%;
  • • International: +4.9%;
  • FTK: +4.0%;
  • • International: +4.6%. [more - original PR]

IATA: "For the second year in a row and only the second time in the airline industry's history, the return on invested capital (9.8%) will exceed the cost of capital (estimated to be 6.8%). This is the minimum expectation level for investors. The airline industry is beginning to generate profits that would be expected of any normal business." Source: Company statement, 02-Jun-2016.