On Thursday, the Director General of IATA, Mr. Alexandre de Juniac brought forward the industry projection for the year 2017.
IATA announced that the global airline industry to make a total revenue of $736 billion with a net profit of $29.8 billion in 2017 which represents a 4.1% profit margin from its 2016 total net profit .
According to the company’s history, this is the third year airlines will be making a return on invested capital of 7.9% which is above the weighted average cost of 6.9%.
In 2016, the airline industry had the highest net profit of 5.1% margin generated over the years, it had a total net profit of $35.6 billion instead of its projected $39.4 billion in June 2016 owing to slower global Gross Domestic Product (GDP) and rising costs.
It said ” Airlines continue to deliver strong results. This year we expect a record net profit of 35.6 billion dollar.”
The airline industry are strong willed to produce more in the coming year even though it forecasted the effects the economy mess will have on its operations. “Even though conditions in 2017 will be more difficult with rising oil prices, we see the industry earning 29.8 billion dollars.” he said.
It is also projecting a total of four billion travellers and 55.7 tonnes of cargo in the coming year.
$769 billion which represents almost one percent of the global GDP is spent on Air transport.