Global Airlines’ Profits to Top $29b

The global airline industry is expected to make a net profit in 2017 of $29.8 billion, representing a 4.1% net profit margin and total revenues of $736 billion, said the International Air Transport Association, TradeArabia reported. This will be the third consecutive year (and the third year in the industry’s history) in which airlines will make a return on invested capital (7.9%) which is above the weighted average cost of capital (6.9%). IATA revised slightly downward its outlook for 2016 airline industry profitability to $35.6 billion (from the June projection of $39.4 billion) owing to slower global GDP growth and rising costs.