Rising Fuel and Labour Costs Impact Airline Profits

Rising fuel and labour costs are the reasons behind a profit downgrade for global airlines from the International Air Transport Association (IATA), which is forecasting a collective net profit of USD33.8 billion  for its members in 2018 . “This is a solid performance despite rising costs, primarily fuel and labor, but also the upturn in the interest rate cycle,” IATA said, lowering the previous forecast of USD38.4 billion. While operating profits for airlines have been trending downwards for the past four years, “the industry’s financial foundations are strong with a nine-year run in the black that began in 2010. At long last, normal profits are becoming normal for airlines.”

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