IATA: airline profits climb

The International Air Transport Association (IATA) revised its 2016 financial outlook for global air transport industry profits upwards to $39.4 billion, up from $36.3 forecast in December 2015.

According to IATA figures released at the organization's AGM in Dublin this week, 2016 is expected to be the fifth consecutive year of improving aggregate industry profits.

In 2015, airlines generated a global aggregate profit of $35.3 billion (re-stated from $33.0 billion estimated in December 2015). All regions are making a contribution to the $4.1 billion boost over 2015 profits with improved results; but there are stark regional differences in performance. Over half of the industry profits will be generated in North America ($22.9 billion) while African carriers are forecast to continue generating an overall loss (-$0.5 billion).

On average, airlines will make $10.42 for each passenger carried, IATA said.

Factors driving profitability include lower oil prices, continued growth in passenger demand and a decline in cargo growth resulting in airline fleets geared toward passenger traffic.