{"id":122568,"date":"2016-12-08T00:00:00","date_gmt":"2016-12-07T22:00:00","guid":{"rendered":"https:\/\/rhn.ro\/iata-revised-downward-the-airline-industry-profit-in-2017\/"},"modified":"2026-03-28T15:31:59","modified_gmt":"2026-03-28T13:31:59","slug":"iata-revised-downward-the-airline-industry-profit-in-2017","status":"publish","type":"post","link":"https:\/\/rhn.ro\/en\/iata-revised-downward-the-airline-industry-profit-in-2017\/","title":{"rendered":"IATA Revised Downward the Airline Industry Profit in 2017"},"content":{"rendered":"<div>The International Air Transport Association (IATA) has lowered its estimate for airline industry profits in 2016 and forecasted a 16% decline in 2017, due to rising crude oil prices.<\/div>\n<div><\/div>\n<div>Airlines worldwide are expected to record cumulative record profits of $35.6 billion this year, compared to the $39.4 billion estimated in June, amid slowing global economic growth and rising costs.<\/div>\n<div><\/div>\n<div>Nevertheless, this would be the fifth consecutive year of earnings improvement, and the net profit margin is expected to reach 5.1% in 2016, also a record level, IATA predicted.<\/div>\n<div><\/div>\n<div>In 2017, profits are expected to reach $29.8 billion, and the average price per barrel of crude oil will be $55, up from $44.60 this year.<\/div>\n<div><\/div>\n<div>Fuel is expected to account for nearly 19% of airline expenses in 2017, compared to 33% in the 2012-2013 period.<\/div>\n<div><\/div>\n<div>IATA estimates that global passenger air traffic will grow by 5.1% in 2017, compared to an estimated 5.9% increase for 2016.<\/div>\n<div><\/div>\n<div>Next year, nearly 61% of net profit will be concentrated in North America, where earnings of $18.1 billion will be recorded, down 11% from this year, while European airlines could face a 25% decline in profit to $5.6 billion, due to competition and the threat of terrorist attacks.<\/div>\n<div><\/div>\n<div>IATA is an organization representing approximately 265 airlines worldwide, equivalent to 83% of global air traffic.&nbsp;<\/div>\n<div><\/div>\n<p>Source: <a href=\"http:\/\/www.economica.net\" data-wplink-url-error=\"true\">Economica<\/a><\/p>\n<h3>Frequently Asked Questions<\/h3>\n<p><strong>Why is IATA forecasting a decline in airline profits for 2017?<\/strong><\/p>\n<p>The primary reason for the forecasted 16% decline is the increase in crude oil prices, which raises operational costs for airlines.<\/p>\n<p><strong>Which region is expected to be the most profitable for airlines in 2017?<\/strong><\/p>\n<p>North America is expected to remain the most profitable region, accounting for nearly 61% of the industry&#8217;s total net profit.<\/p>\n<p><strong>How has the share of fuel costs in airline expenses changed?<\/strong><\/p>\n<p>Fuel is projected to represent about 19% of expenses in 2017, a significant decrease from the 33% seen during the 2012-2013 period.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The International Air Transport Association (IATA) has lowered its estimate for airline industry profits in 2016 and forecasted a 16% decline in 2017, due to rising crude oil prices. Airlines worldwide are expected to record cumulative record profits of $35.6 billion this year, compared to the $39.4 billion estimated in June, amid slowing global economic&hellip;<\/p>\n","protected":false},"author":0,"featured_media":66424,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2856],"tags":[],"thb-sponsors":[],"class_list":["post-122568","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-conectivity"],"article_style_override":"","post-style":"","post_via":"","post-top-image":"https:\/\/rhn.ro\/wp-content\/uploads\/2019\/11\/transport-2.jpg","_links":{"self":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/122568","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/comments?post=122568"}],"version-history":[{"count":0,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/posts\/122568\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media\/66424"}],"wp:attachment":[{"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/media?parent=122568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/categories?post=122568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/tags?post=122568"},{"taxonomy":"thb-sponsors","embeddable":true,"href":"https:\/\/rhn.ro\/en\/wp-json\/wp\/v2\/thb-sponsors?post=122568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}