The world’s airlines are cruising towards their highest profit record of $19.7 billion by 2014, the International Air Transport Association (IATA) has said.
Industry’s profit increase
The estimate is an update on IATA’s previous prediction of earnings of $16.4 billion.
IATA said cost-cutting measures, lower oil prices, and increasing demand for travel were behind its increase.
The Geneva-based trade body also upgraded its profit estimate for 2013 to $12.9 billion from an earlier forecast of $11.7 billion.
Although total profits were soaring, IATA said profit margins were being squeezed.
Industry’s best performers
IATA represents 240 airlines, which cover 84% of total air traffic.
It said that North American airlines were the industry’s best performers, with earnings set to increase this year.
Chief executive Tony Tayler said the industry’s fortunes are moving in the right direction. He also added that airlines would “only make” a net income of about $5.94 for every passenger in 2014.