Airports in the Aviation Value Chain [E-Book]: Financing, Returns, Risk and Investment / Mike Tretheway and Kate Markhvida
Tretheway, Mike.
Markhvida, Kate.
Paris : OECD Publishing, 2013
31 p. ; 21 x 29.7cm.
International Transport Forum Discussion Papers ; 2013/15
Full Text
The global airline industry is slowly returning to profitability, but there is a long and difficult road ahead. According to IATA, the industry raised a profit of $8 billion in 20112 and it is forecasted to make a profit of $11 billion in 2013.3 However, these improved profit margins continue to be razor thin – in the best of times the airline industry earns only a modest 1-2% net profit margin on revenue. Volatile fuel prices, economic downturns, impacts of terrorism and natural disasters (hurricanes, volcanic ash, tsunamis), pandemics and government austerity measures are among the key factors that will continue to affect airline profitability...