As reported by the Financial Times, the International Air Transport Association (IATA) released 2019 estimates showing that global airlines are expected to experience a 10th consecutive year of profitability. IATA forecasts net profit across the industry would be $35.5 billion, which is up 9.9 percent from 2018, but still below the 2017 peak of $37.7 billion. The higher forecast is in part due to Brent crude oil falling to an average of $65 next year, which is historically a tailwind for airlines stocks, as fuel is one of their largest operating expenses.
IATA director general and chief executive Alexandre de Juniac said “We are cautiously optimistic that the run of solid value creation for investors will continue for at least another year. But there are downside risks as the economic and political environments remain volatile.”
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Read the full article, “Airlines Forecast to Enjoy Longest Run of Profits,” on www.ft.com.
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