Airlines are expected to achieve a global net profit of
His comments were made in his state of the industry address to the 70th IATA Annual General Meeting and World Air Transport Summit held in the Qatari capital yesterday.
The industry's average return on invested capital is expected to reach 5.4% this year, up from 3.7% in 2012 and 4.4% in 2013.
But even with the improvement, there remains a gap before the return reaches the industry's cost of capital ? considered the minimum in most industries ? which is estimated in the 7-8% range, according to the trade body that represents 242 airlines comprising 84% of global air traffic.
The profit projection announced by
However, the IATA chief noted an improved industry structure is among the factors supporting strengthened performance this year.
The current profit forecast is built on expected global GDP growth this year of 2.8%, below the 2.9% forecast in March, and growth in world trade of 3.6%, down from 4.5%.
Economic prospects are, however, expected to improve as the year progresses.
"Securing aviation's future begins with some immediate challenges. Airlines must be profitable, safe and secure businesses. We need to provide efficient, customer-focused services. And sustainability must be integral to everything we do," said
This year, airlines will connect 3.3 billion people and 52 million tonnes of cargo over 50,000 routes, supporting 58 million jobs and delivering goods with a value of
"And by working together with a global mindset, there is enormous potential still to be achieved,"
Airlines remain burdened with high taxes, which this year are expected to reach
"The loss of MH 370 points us to an immediate need. A large commercial airliner going missing without a trace for so long is unprecedented in modern aviation. It must not happen again. IATA, the ICAO (
A global approach to improving security is also needed. "The industry is secure, but passengers still say security remains their biggest travel hassle. Inconsistencies across jurisdictions defy understanding,"
Aviation is an intensely regulated and highly taxed industry.
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