The international air transport association, Iata, has again cut its earnings estimates for 2014 by reducing the annual net profit from 18,7 billion to 18 billion dollars, still a figure far above the 12,9 billion recorded in 2013. The main cause lies in the Chinese economy, less brilliant than expected.
He had made an initial decrease last March following the tensions in Ukraine and fears of an economic slowdown in Latin America: he had revised downwards the forecasts on the annual net profit from 19,7 billion to 18,7 billion.
The cut, announced today by the general manager, Tony Tyler, in the annual meeting of the 240 member airlines underway in Doha, was driven in particular by concerns about economic growth in China, although the general economic outlook is expected to improve in course of the year.
Collectively, the airlines will generate revenues of $746 billion, or just under $6 per passenger, and will still see low margins despite the recent improvement in fuel prices, one of the biggest drags on the industry. The operating margin is forecast for the end of the year at a limited 2,4%.
The industry has faced "strong headwinds," Tyler said, citing rising infrastructure costs, inefficiencies in air traffic management, heavy tax burdens and costly regulatory regulation among the biggest penalties.
