Apex global aviation body IATA today raised the sector's profit forecast for this year to USD 12.9 billion and to USD 19.7 billion for 2014, citing falling oil prices, rising travel demand coupled with alliances and mergers.
"We are raising our global profit outlook for this year to USD 12.9 billion. And we see this increasing to USD 19.7 billion next year," International Air Transport Association (IATA) chief Tony Tyler said here.
"That is USD 1.2 billion better for 2013 than we expected in September. And it is USD 3.3 billion better for 2014," he added.
If the 2014 forecast turned out to be accurate, it would be the sector's highest-ever profit figure, he said.
"This is being led primarily by a slight fall in the high price of oil and the positive impact that mergers and joint ventures are having, generating better connectivity for passenger and driving efficiency," Tyler said.
The average margin of the airline industry are also expected to see the highest absolute profit ever at 2.6 per cent in 2014, Tyler said.
"Many other will under-perform. It is average projection. But it tells is is that we are not rewarding our shareholders in line with the risk, complexity and value that are inherent in the airline industry," he added.
"Over all, the industry's fortunes are moving in the right direction. Jet fuel prices remain high but below their 2012 peak. Passenger demand is expanding in the 5-6 per cent range, in line with the historical trend," Tyler said.
Tyler said that the passenger traffic for 2013 also looks impressive as the global carriers are expected to carry a record 3 billion passengers for the first time.
"This will (likely) increase to 3.3 billion in 2014. So we are approaching a point where the industry will soon move half the world's population from one place to another," he said.
