Airline industry profits may soften, IATA cautions
The global airline industry is set for another strong collective profit this year, but there are indications that its financial improvement could be slowing. Airlines are expected to collectively achieve a US$39.4b profit for 2016, IATA said Thursday. This would be the second year in succession that the industry's return on invested capital exceeded the cost of capital. These results are not evenly spread, however. The profits are largely attributable to US airlines, and this trend is likely to continue, IATA chief economist Brian Pearce said. In comparison, the industry in Latin America and Africa remains weaker, primarily because of foreign exchange rate shifts and problems with economies in these regions. The latest airline profit cycle is now showing signs of peaking, Pearce said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-09-23/general/airline-industry-profits-may-soften-iata-cautions
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Airline industry profits may soften, IATA cautions
The global airline industry is set for another strong collective profit this year, but there are indications that its financial improvement could be slowing. Airlines are expected to collectively achieve a US$39.4b profit for 2016, IATA said Thursday. This would be the second year in succession that the industry's return on invested capital exceeded the cost of capital. These results are not evenly spread, however. The profits are largely attributable to US airlines, and this trend is likely to continue, IATA chief economist Brian Pearce said. In comparison, the industry in Latin America and Africa remains weaker, primarily because of foreign exchange rate shifts and problems with economies in these regions. The latest airline profit cycle is now showing signs of peaking, Pearce said. <br/>
