IATA Again Cuts Airline Profitability Outlook for 2019

The global airline group sees slower economic growth, trade wars, and social unrest contributing to a less profitable year than originally expected.

By Cathy Buyck • Contributor - Europe

December 11, 2019

Even though 2019 will mark the tenth consecutive year of profitability for the global airline industry, full-year profits will come in lower than expected and at its lowest level since 2015, when world’s airlines jointly reported record net earnings of $36 billion—or $10.08 per departing passenger, the International Air Transport Association said on Wednesday. IATA further reported that net profit for 2019 will likely total $25.9 billion, which is almost a third lower than the forecast $35.5 billion it released in December 2018 and about 8 percent lower than the $28 billion net profit it still had anticipated in June. “Slowing economic growth, trade wars, geopolitical tensions, and social unrest, plus continuing uncertainty over Brexit all came together to create a tougher than anticipated business environment for airlines,” noted IATA director-general and CEO Alexandre de Juniac, speaking at the trade body’s annual global media days in Geneva.

The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background. The rest of this article continues for AIN Members with the full report, analysis and background.