Message from the Director General & CEO
The air transport industry emerged from a decade of crises and shocks with an US$18 billion profit in 2010. But the events that marked the first half of 2011— the tragic Japanese earthquake and tsunami, volcanoes, unrest in the Middle East, fast-rising oil prices, slowly-recovering economies and a currency crisis — will see profits fall to $4 billion. For a $600 billion industry, that is a pathetic 0.7% margin.
We have made great progress. Over the last decade airlines improved productivity 67%, increased fuel efficiency by 24% and cut unit costs by 9%. IATA directly contributed to these efforts by delivering $59 billion in cost savings since 2004 alone. Despite these changes sustainable profitability remains elusive. And there is no magic solution. Our future must be built on innovation, stronger partnerships across the value chain, a renewed relationship with governments and even more hard work.
It has been a pleasure and a privilege to lead IATA since 2002. I thank you for your support as we fought crises and shocks — and built stronger industry. And I also thank you for the confidence that you will give Tony Tyler, my successor, to take IATA, and more importantly the industry, to even greater heights.