Aviation Strategy

Airline Industry: demand and
profitability under pressure — June 2019

IATA presented its midyear economic update of the global airline industry at its AGM at the beginning of June (held this year in Seoul). Traffic in 2018 looks to have grown by 7.4% in RPK terms continuing a strong above-trend rate of 6% a year since the last peak in 2008. However, the industry association slashed its forecasts for profitability by 27% for 2019 — the fifth year of profits' decline since the 2010 peak. Should the industry expect a cyclical downturn? ……

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