IATA, the International Air Transport Association, has increased the profit forecast for the air transport industry for 2016. The association now estimates profits to rise to $39.4bn, 8% more than its previous forecasts. The forecast also exceeds the 2015 profit of $33bn by 20%.
IATA expects that over half of the profits will be realized in North America. A big portion of the profits are achieved due to low oil prices, but the association also noted that the impact of low oil prices still is tempered due to oil and forex hedging.
Additionally, the margins in the airline industry are still meager compared to other industries.