Global Airline Industry Forecast to Improve in 2020, Says IATA
Domestic segment seen as declining with slowing economy and increase in aircraft deliveries >>
by: Harvey Chipkin
The International Air Transport Association (IATA) forecast that the global airline industry will produce a net profit of $29.3 billion in 2020, an improvement over the net profit of $25.9 billion expected in 2019. If achieved, 2020 will mark the industry’s 11th consecutive year in the black. Highlights of projected 2020 industry performance include: increased return on invested capital from 5.7% in 2019 to 6%; net profit margin up to 3.4% from 3.1%; overall revenues up 4% from $838 billion to $872 billion; operating expenses up 3.5% from $796 billion to $823 billion; and passenger numbers up 4% from 4.54 billion to 4.72 billion. North American carriers are expected to see reduced profits (down from $16.9 billion to $16.5 billion), partly as a result of a slowing economy and a significant increase in aircraft deliveries with the expected return to service of the 737 MAX fleet.
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