The International Air Transport Association announced on Monday that airlines would earn in profit more than $18 million in 2014, which is slightly less than its previous outlook for the industry.
The IATA cut back its previous projection for profits by almost $700 million. It is the second time the group revised its projection for profits downward for the airline industry for 2014 due to high costs of fuel and slower emerging markets growth.
The association represents over 200 worldwide airlines and in December of 2013 forecast a profit industry wide of $19.7 billion for 2014. In 2013, the industry as a whole earned profits of over $12.9 billion.
Airlines for this year should generate over $746 billion in sales, said the CEO of the global lobby group for the airline industry Tony Tyler. The projection for sales is higher by $1 billion from the one released this past March.
Tyler said that every day it is a struggle to maintain revenues ahead of the huge costs to operate. Tyler gave his remarks at the annual general meeting for IATA. He added that financial performance still does not meet the overall value the industry delivers.
The average invested capital return is up from 1.4% for 2008 to a current 5.4% said Tyler.
Speaking during the first global gathering of IATA since the Malaysia Airlines Boeing 777 tragedy, with the wreckage still not located, Tyler said that sequence of events that took place could not be allowed to take place ever again.
IATA set up its own working group in order to figure the best way to track airlines worldwide.
The proposal needs to be submitted in September to the International Civil Aviation Organization a group from the United Nations that is overseeing the airline industry, said Tyler.
The biggest focus is on the tracking of aircraft, rather than having large amounts of streaming data from the aircraft to the ground. The tracking technology, said Tyler would be fastest and easiest to implement on the aircraft.
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