Expatica news

IATA expects record profit for airlines as oil prices plunge

Global airline association IATA on Friday raised the sector’s profit forecast to a record $19.9 billion for 2014 and $25 billion for 2015, as plunging oil prices drive down costs.

“Lower oil prices and stronger worldwide GDP growth are the main drivers behind the improved profitability,” IATA said in a statement.

Crude prices have plunged by more than 40 percent since June, owing in part to a glut in supplies as the United States ramps up shale production.

The price drop is fuelling record takings for the aviation industry, with collective profit to more than double in 2015 from $10.6 billion in 2013.