Slimmer margin will offset record profit, airlines predict

GENEVA >> The global airline industry expects its profits to jump to a record high next year, helped by falling jet fuel prices, rising travel demand and cost-cutting. The International Air Transport Association said this past week it forecasts a profit of $19.7 billion — well above the $12.9 billion expected this year and the $7.4 billion made in 2012.

But the Geneva-based group, which represents 240 airlines, or 84 percent of total air traffic, noted margins are dropping. Next year’s profit would come from projected revenue of $743 billion. By contrast, 2010’s $19.2 billion profit was made on revenue of just $579 billion.

Tony Tyler, director-general and CEO of IATA, said the profit would amount to a little less than $6 per passenger. “To put that into perspective, the McDonald’s down the road here in Geneva will make about the same amount of profit by selling four Happy Meals,” Tyler said.
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Associated Press

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