GENEVA Dec 8 Airlines will make less profit in
2016 than previously expected and profits will fall in 2017 with
oil prices rising and demand slowing, the International Air
Transport Association said on Thursday.
IATA, representing some 265 airlines accounting for 83
percent of global air traffic, is now forecasting they will make
a collective net profit of $35.6 billion this year, against a
previous forecast for $39.4 billion.
For 2017, it expects profit will fall to $29.8 billion,
breaking a streak of five years of profit growth.
However, at a predicted 7.9 percent, the industry's return
on capital is also expected to exceed the cost of capital in
2017 for the third year in a row, a boost for investors in the
"The airlines are in a better shape to remain profitable
while facing these challenges," IATA Director General Alexandre
de Juniac told journalists.
(Reporting by Victoria Bryan; Editing by Maria Sheahan)