Iata looking on the bright side in 2015
In its economic performance of the air transport industry report, the International Air Transport Association (Iata) predicts that earnings will improve next year. Airlines are expected to post a collective global net profit in 2014 of some USD 19.9 billion (up from the USD 18 billion projected in June). This looks set to rise to USD 25 billion in 2015.
On the cargo side, volumes are forecast to grow by 4.5% in 2015 (slightly ahead of the 4.3% growth expected for 2014). The air cargo business has faced weak markets and increasing competition since 2011. There has been an uptick in demand recently, but cargo remains a tough business. The real cost of transporting goods in 2015 is expected to fall by 5.8%. It is thought that some 53.5 million t of air cargo will be flown in 2015. Total cargo revenues are expected to rise to USD 63 billion, but that is still some 5% lower than in 2010.