Tourism Breaking News
IATA had projected a net profit for the industry of $35.5 billion in its first outlook for 2019, made in December last year. A revised profit of $28 billion for this year would mark a $2 billion reduction on the 2018 industry net profit, which has itself also been revised downwards to $30 billion. In reducing industry profit expectations, IATA says it sees costs rising by 7.4% in 2019 – outpacing a 6.5% increase in revenues. “The business environment for airlines has deteriorated with rising fuel prices and a substantial weakening in world trade” IATA says. On the cost side IATA has increased its expectations for fuel costs – it now expects to average around $70 per barrel Brent crude oil during 2019. That compares with the $65 barrel price it projected in its last forecast. It also see increased non-fuel costs from labour and infrastructure. IATA has also trimmed its revenue expectations for 2019 by $20 billion. It now sees industry turnover growing 6.5% at $865 billion.
Source: Flight Global
