IATA warns of ‘me-first’ risks

The fragmentation of decades-long multilateral agreements on global trade is expected to create disruptions that could threaten a potential record year for airlines in terms of earnings, the International Air Transport Association (IATA) said.

- By DEXTER BARRO II

IATA projects the global airline industry will grow net income by 3.8 percent to $41 billion this year from last year’s $39.5 billion.

While this would set a new record for airlines, net profit margin is expected to remain unchanged at 3.9 percent, reinforcing its reputation as one of the lowest-margin industries.

“In per-passenger and US (United States) dollar terms, the industry’s anticipated net profit equates to $7.90—below what Apple earns from selling one iPhone cover,” IATA said in its assessment.