A good year ahead for airlines

Courtesy AP

Courtesy AP

The International Air Transport Association (Iata) has raised its profit forecast for 2014 to US$19.9 billion from the earlier prediction of US$18 billion. Encouraged by falling fuel prices and recovery of the world economy, Iata director-general Tony Tyler said “the industry outlook is improving.” The association representing some 250 airlines expects a record US$25 billion profit for the global airline industry next year.

It is a long year ahead, but the industry is more certain now about its prospects as airlines are reporting higher profits. Oil prices continue to slide. In fact, airlines are yet to enjoy the full impact of the falling fuel prices. Of course, there is the usual caveat of political unrest and conflicts that can turn the tables.

Is there good news for passengers as well? According to Iata’s prediction, average return fares will be 5.1 per cent lower next year. Keep your fingers crossed, as no airline has yet to boast openly about taking the lead to lower the fuel surcharge.

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About Dingzi
Writer by passion, with professional expertise in aviation, customer service and creative writing. Aviation veteran, author, editor and management consultant. Besides commentary on business issues and life-interest topics, travel stories and book reviews, genres include fiction, poetry and plays. Nature lover who abhors cruelty of any form to animals, and a tireless traveler. Above all, a dreamer.

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