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September 2022, Virtual
September 29 2022, Virtual
Global airfares are expected to fall 3.5 per cent in 2014, according to IATA’s new industry report.
With global spend on air transport expected to hit $746 billion in 2014 and passenger numbers rising to 3.3 billion, the study showed airfares will continue to fall in real terms (after inflation) compared to the previous year.
IATA’s Economic Performance of the Airline Industry report looks at the value of air transport. It analyses how the airline industry aims to improve profitability through efficiency gains while connecting more cities, lowering transport costs, supporting jobs, and making major investments.
The study also found that the airline industry has cut $700 million off its global profit forecast for 2014.
IATA now expects airlines to make a profit of $18 billion down from $18.7 billion in its previous forecast in March.
The report found concerns over China’s economic growth and political risks have prompted the cut in forecasted profits. “World trade has slowed since March, and business confidence has fallen with concerns over China’s economic growth,” IATA said.
IATA CEO Tony Tyler said airline efforts to improve performance further need a counterpart in government.
“Governments should understand that the real value of aviation is the global connectivity it provides and the growth and development it stimulates, not the tax receipts that can be extracted from it," said Tyler.
An IATA report last month showed global air passenger growth rose 7.5 per cent, compared to April.