IATA reduced the annual profit prospects for airlines

The International Air Transport Association (IATA) reduced its profit forecast of airlines by the end of the year. The association expects a 28 billion USD profit instead of the previous 35.5 billion USD gross after tax profit.

Brian Pierce, chief economist of the organization said in Seoul at a press conference, that primarily due to the increase in kerosene and wage costs, the costs of companies have increased significantly, but revenues have not changed significantly due to non-or hardly rising ticket prices. The economist pointed out that the profit is only 6 USD per passenger and is steadily declining. Since the record year in 2016, the profitability of companies has been worsening every year. (Körtvélyes Tivadar, MTI)