International Air Transport Organization (IATA) has reduced global profits for 2018, from $ 38.4 billion from $ 33.8 billion.
According to the current forecast, revenues will reach 834 billion dollars, which is higher than 10.7% in 2017.
As it turns out, IATA decided to review the net profit on the background of increasing expansion of airlines. It is noteworthy that Brent’s fuel price is 70 dollars per barrel this year, which is 16.7% higher than the average price of 2017.D
Due to this background, price for aviation fuel rose. At this time, the price increase was 25.9% and the price of 1 barrel is 84 dollars. It should be noted that 24% expenses of the airline’s comes to the fuel.
Growth of capital expenses is also expected.
Recall that IATA combines 290 companies with 80% of world flights.