Airlines on course for higher profit as demand flies 

Aviation analysts write that airlines are on course to increase profits in 2018.

They say the International Air Transport Association (IATA) forecasts a rise in net profit to $38.4bn (£28.4bn) in 2018, up from an expected $34.5bn for 2017. 

They suggest the heightened expectations are a result of strong demand, efficiency and reduced interest payments. This is despite an expected decline in operating margin to 8.1 per cent, down from 8.3 per cent. “These are good times for the global air transport industry,” said the IATA’s chief executive Alexandre de Juniac. “Safety performance is solid. We have a clear strategy that is delivering results on environmental performance. More people than ever are travelling. The demand for air cargo is at its strongest level in over a decade. Employment is growing. More routes are being opened. Airlines are achieving sustainable levels of profitability. It’s still, however, a tough business, and we are being challenged on the cost front by rising fuel, labour and infrastructure expenses.” 

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