Skip to main content

IATA Airline Margins

IATA Airline Margins - International airlines will likely beat earlier profit forecasts this year after revived passenger and cargo traffic, but the industry remains fragile and underlying profitability is weak.

Global airlines are now expected to achieve an aggregate net profit of $15.1 billion this year, up from a forecast of $8.9 billion earlier this year, the International Air Transport Association said. The industry group said it has also tweaked its forecast for 2011 and now expects the airline industry to post an aggregate net profit of $9.1 billion next year, compared with an estimate of $5.3 billion made in September. IATA said, however, the airline industry's average 2.7% net-profit margin remains weak and will fall to 1.5% in 2011.

"Our profit projections increased for both 2010 and 2011 based on an exceptionally strong third-quarter performance. But despite higher profit projections, we still see the recovery pausing next year after a strong post-recession rebound. And the two-speed nature of the recovery is unchanged, with European airlines continuing to underperform other regions," said Giovanni Bisignani, IATA's director general and CEO.

IATA Airline Margins

"Margins remain pathetic. With a 2.7% net margin in 2010 shrinking to 1.5% in 2011, we are nowhere near covering our cost of capital. The industry is fragile and balancing on a knife edge. Any shock could stunt the recovery, as we are seeing with the results of new or increased taxation on airlines and travelers in Europe," said Mr. Bisignani.

IATA pointed out that although the changes in the industry forecasts appear dramatic in absolute numbers, the $6.2 billion increase in IATA's projection for the 2010 net profit is equal to just 1.1% of the industry's projected $565 billion in revenue for this year.

"Any increase in profits is a welcome step in the right direction. But the fact that we can increase our profit forecast by 70% and still be left with a net margin of just 2.7% shows just how far this industry has to go to achieve a normal level of profitability," Mr. Bisignani said.

IATA Airline Margins
Labels:

Comments

Post a Comment

Popular posts from this blog

Contactless Debit Cards

Contactless Debit Cards - Contactless debit cards will make their formal debut in Canada next year with the launch of Interac Flash from Acxsys Corp.’s Interac Association, Canada’s national debit network. Interac’s first two Flash issuers are Scotiabank and RBC Royal Bank, which will roll out their first contactless cards next summer. The first acquirer is TD Merchant Services, a unit of Toronto-Dominion Bank. More issuers and acquirers are on the way, an Interac spokesperson tells Digital Transactions News, though no announcements have been made yet. Interac and the banks tested Flash this summer at some high-volume, small-ticket merchants in downtown Toronto. The spokesperson expects national merchants will be making formal announcements about acceptance. “There’s a lot of excitement in the merchant community,” she says. “Merchants are looking for that faster throughput.” In a statement, the Retail Council of Canada endorsed the new card. “Interac Flash is a welcome and needed
Post a Comment
Read more

The Craigslist Killer TV

The Craigslist Killer TV - Lifetime last night turned the Craigslist killer headlines into a much watched and even more talked about TV movie. The movie told from Ms Megan McAllister’s point of view is chilling, even if it didn’t have her consent. For those who don’t know the story, Philip Markoff a Boston University medical student and fiancé of Ms McAllister met Julissa Brisman on Craigslist and murdered her. Markoff met Brisman on Craigslist, arranged a meeting for a massage. Police at the Boston Marriott Copley Place hotel found Brisman, shot dead and a massage table set up in the room. Brisman, who was 25 at the time, was pursuing a modeling career. Four days earlier a Las Vegas prostitute reported being attacked and robbed by an armed man at a nearby hotel, a stripper at the Holiday Inn in Warwick, Rhode Island reported a similar incident, as well as two more in the area. The Craigslist Killer TV Megan Mcallister, loved and almost married Philip Markoff. The question of thi
Post a Comment
Read more

Farm dogs maul Irish Tourist

Farm dogs maul Irish Tourist - An Irish tourist who was mauled to death by two dogs while visiting an organic farm in Penang yesterday morning had more than 50 bite wounds and lacerations all over his body. Penang Hospital Forensic Department head Datuk Dr Bhupinder Singh, who performed the post-mortem on Maurice Sullivan (pix), 50, today, said he found the wounds on the victim's head, neck, hands and legs. "The victim had died as a result of severe haemorrhage due to multiple injuries from the dogs' bites," he said, adding that there were no signs that Sullivan suffered any ailment at the time of death. Farm dogs maul Irish Tourist Bhupinder also said both Sullivan's ears and the left side of his face were gnawed off in the incident. One of the ears was recovered from the scene. Bhupinder told reporters this after carrying out the post-mortem which began at 10am. Sullivan was attacked by two mongrels at the farm while taking photographs of the gr
6 comments
Read more