Aviation industry forecasts: 2019 is going to be the worst year since 2014. Rising fuel prices and labour costs, and a tense geopolitical climate in Venezuela and the Middle East, the trade war between China and the United States, the grounding of the 737 MAX, and an increasingly competitive climate. These are some of the main reasons why 2019 is set to be the worst year since 2014 for the airline industry.
According to Alexandre de Juniac, CEO of the International Air Transport Association (IATA), the aviation industry – defined by a panel of 290 airlines – is expected to make a profit of $28 billion this year. This is $7.5 billion short of last December forecast. It would also be the lowest profit recorded by the aviation industry since 2014.
According to IATA, airline costs are expected to grow by 7.4% this year, while sales are expected to grow by only 6.5%. Profit per passenger is expected to decline by 11% from $6.85 to %6.12 between 2018 and 2019.
On a more positive note, IATA reports that the aviation industry is expected to reach its 10th consecutive yearly profit, a record that sharply contrasts with the boom-and-bust cycles that have characterised this industry for decades.
John is a passionate traveler who has traveled to over 46 countries on more than 30 different airlines. He loves surfing, booking hotels and flights using his frequent flyers points, and exploring new cultures. John lives in London.