Complex Made Simple

‘Airline industry to receive revenue of $727 billion in 2015’

According to a statement by the International Air Transport Association (IATA), the airline industry is expected to receive $29.3 billion in net profit in 2015, compared to $16.4 billion in 2014.



With anticipated revenue of $727 billion, according to IATA, the industry will achieve a four per cent net profit margin this year.

The industry expectations for this year are a result of numerous global factors such as economic prospects, lower fuel prices, and appreciation of the US dollar. According to IATA, the main forecast drivers for this year are fuel prices, revenues, passenger business and cargo.

The research shows that all regions across the world are expected to see improvement in profitability in 2015, but more than half of global profits are expected to be produced by North American airlines, expected to generate $15.7 billion this year.

Middle Eastern airlines are expected to collectively receive $1.8 billion net return this year, resulting in a net margin of 3.1 per cent, according to IATA. The research continues to explain that the regional carriers are the only region to have double-digit expansion, with an expected 12.9 per cent increase in passenger numbers in 2015.

“For the airline business, 2015 is turning out to be a positive year. expected that record high passenger load factor of 80.2 per cent will take place,” says Tony Tyler, director general and CEO of IATA. “The result is a hard-earned 4 per cent average net profit margin. On average, airlines will retain $8.27 for every passenger carried.”