IATA, the global grouping that represents around 265 airlines, said the profitability outlook for this year has been revised downwards owing to "slower global GDP growth and rising costs".
In June 2016, the International Air Transport Association (IATA) projected the airlines industry to rake in a profit of USD 39.4 billion. Still, this year's estimated profit number would be slightly higher than USD 35.3 billion seen in 2015.
He was speaking at the Global Media Day organised by IATA here, where the grouping also came out with its latest state of the industry and economic outlook.
According to IATA, expected higher oil prices would have the biggest impact on profitability outlook for 2017.
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Fuel is expected to account for 18.7 per cent of the industry's cost structure in 2017, which would be significantly below the recent peak of 33.2 per cent in 2012-13.
The projected profit figure on the basis of forecast total revenues of USD 736 billion would represent a 4.1 per cent net profit margin.
"A net profit of USD 29.8 billion in 2017 will mean eight years in the black for the industry. And it will be the third year in row where the return on invested capital (7.9 per cent) will exceed the cost of capital (6.9 per cent)," de Juniac said.
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