The global airline industry expects its profits to leap to a record high next year, helped by strong passenger demand, increased efficiency and a continued fall in jet fuel prices.
The International Air Transport Association forecasts 2015 will bring $25 billion in net profit — well above the $19.9 billion this year and the $10.6 billion in 2013 and $6.1 billion made in 2012.
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That is based on a forecast that the price of oil will average $85 per barrel. On Wednesday, the U.S. contract was trading below $63 a barrel.
The Geneva-based group, which represents 240 airlines, or 84 percent of total air traffic, said profit margins on expected revenues of $783 billion are due to remain tight — only 3.2 percent, just up from 3.1 percent in 2010.