All signs lead to a solid start to the year, says IATA December report
Travelweek Group, Travelweek
IATA’s December report of the Airlines Financial Monitor shows that the industry-wide EBIT profit margin remained broadly unchanged in Q3 relative to a year ago, at a robust 14.7% of revenues.
All regions posted double-digit operating margins in the quarter, led by European carriers at 19.7%. In a sign that industry profitability is now stabilizing from the weaker first half of last year, every region except North America registered a year-on-year increase in operating margin.
Industry-wide passenger yields are currently broadly unchanged from where they were a year ago. Against a backdrop of robust global economic growth and rising input costs, IATA forecasts yields to rise modestly in 2018.