News

IATA Revises Global Outlook Figures

IATA Revises Global Outlook Figures

The International Air Transport Association (IATA) revised its 2016 financial outlook for global air transport industry profits upwards to $39.4 billion (from $36.3 billion forecast in December 2015). That is expected to be generated on revenues of $709 billion for an aggregate net profit margin of 5.6%. 2016 is expected to be the fifth consecutive year of improving aggregate industry profits.1-IMG_0843

The airline industry continues to add value to its customers, to the wider economy, and to governments:

  • Consumer benefits from the industry’s improved performance are significant. In 2016 the average return airfare (before surcharges and taxes) is expected to be $366, which is a 62% reduction on 1995 levels (after adjusting for inflation). Passenger numbers are expected to reach 3.8 billion. The network of unique city pairs will reach 18,243.
  • The number of direct airline jobs is expected to rise by 2.8% in 2016 to 2.61 million. The total airline payroll in 2015 is expected to reach $153 billion (up 6.4% from $144 billion in 2015). Compared with 2015, average unit labour costs are expected to rise by 0.1% as productivity per employee improves 3.4%. Airline employees are also extremely productive for the economies in which they work, generating gross value added (GVA, the company level equivalent to GDP) of $100,186 per employee in 2016 (up 5.3% on 2015).
  • The industry tax bill is expected to grow to $118 billion in 2016, a 5.5% increase on 2015.
  • Airlines’ environmental performance continues to improve. The industry is on target to meet its goal of improving fuel efficiency by an average of 1.5% annually until 2020. Current analysis shows that on average the sector has improved fuel efficiency by 2.4% per year since 2009, a figure that is expected to normalise in the coming years.
  • Investments in new aircraft are a major driver of fuel efficiency improvements. In 2016, airlines are expected to take delivery of almost 1,900 new aircraft. About half are projected to replace less fuel-efficient older aircraft.
  • The industry remains committed to achieving carbon-neutral growth from 2020. This is in addition to a 1.5% average annual improvement in fuel-efficiency to 2020 and complements the long-term goal of cutting net emissions in half by 2050 (compared with 2005 levels).

IATA represents some 260 airlines comprising 83% of global air traffic.

Click to add a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

Michael Flood is the Editor of Ireland's leading travel industry publication, Irish Travel Trade News. With more than 35 years experience, he has accumulated an in-depth knowledge of the airline industry and the travel and tourism world.

More in News

1-IMG_2915

Aer Lingus to Launch Dublin-Miami on 1st September

Michael FloodJuly 25, 2017
WH Veranda Suite-XL

Silversea Luxury Seven-Day Cruise in Northern Europe

Michael FloodJuly 25, 2017
Travel Deals

Great Value Travel Deals – 25th July 2017

Sarah SlatteryJuly 24, 2017
london gaa launch 13

CityJet becomes the Official Airline of London GAA

Michael FloodJuly 24, 2017
Repro Free: Thursday 21st July, Dublin Airport:
Aer Lingus welcomed a piece of Irish aviation history into its hangar at Dublin airport today as it received a Douglas DC-3 aircraft hailing from the 1940s and 50s and freshly painted in the Aer Lingus livery of that era. The DC-3 was the fifth aircraft type to be operated by Aer Lingus in 1940 and at that time was part of a fleet of just 5, while today’s fleet now stands at 63 aircraft operating more than 100 routes to UK, Europe and North America. The DC-3 aircraft will feature in Bray Air Display and Foynes Air Show this weekend. Pictured are Aer Lingus cabin crew Sarah Jane Bennett and Christina Foley wearing the airline’s 1940s uniform together. Picture Jason Clarke

Aer Lingus gets nostalgic about the DC 3

Michael FloodJuly 24, 2017
CAR Website

CAR Issues New Travel Agents Licence

Neil SteedmanJuly 24, 2017
Relax in tropical splendor on the deserted barrier island beaches surrounding Marco Island.

Naples on Florida’s Paradise Coast a Must Visit Destination

Michael FloodJuly 23, 2017
Travelport Drive Me

Booking a Car Transfer Made Easy with Travelport Drive Me

Neil SteedmanJuly 23, 2017
IMG_0822

AirWaves from Royal Caribbean/Celebrity Cruises/Azamara Club Cruises

Michael FloodJuly 20, 2017

Copyright © 2016 Belgrave Group Limited, C4 Nutgrove Office Park, Nutgrove Avenue, Rathfarnham, Dublin 14, Ireland