Airlines’ Earnings Surge Masks Narrow Margins, IATA Says
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Airline industry earnings that are forecast to reach a record this year on surging U.S. gains mask margins too thin to provide any real resilience to economic setbacks, the International Air Transport Association said.
Carriers will earn $18 billion in combined net income in 2014, IATA Chief Executive Officer Tony Tyler said today at the group’s annual meeting in Qatar. That’s $700 million less than previously forecast and represents a margin of just 2.4 percent on projected sales of $746 billion, or $5.42 per passenger.