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Economic reports - Profitability

Analysis on ensuring financial sustainability of the industry and an appropriate return for investors.


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FX impacts on airlines (Dec 2015)
The international nature of the aviation industry means that airlines are exposed to currency fluctuation risk. This paper outlines the ways in which FX changes can impact airlines – both directly and indirectly.
Dec 2015   
Profitability and the Air Transport Value Chain
This study updates earlier research on profitability across the air transport supply and distribution chain. It shows airlines generate returns on capital of 4.1% during 2004-2011, far below the industry’s cost of capital and possibly too low to att.....
Jun 2013   
Explaining over-capacity in the airline industry
by Oliver Wojahn; The airline industry has suffered from insufficient profitability for many years, and since 2000, it has failed to cover its cost of capital. These results, however, appear to be somewhat incompatible with another feature of the ind.....
Jan 2012   
Airline Profits 2008
Analysis of the 2008 results for 233 major airlines shows that record fuel prices and the impact of the great recession hit profitability across scale and business model.
Feb 2010   
Airline Profitability 2006
Analysis of changes in airline operating profitability over the last year and ranking of top 30 most profitable airlines.
Jun 2007   
Does the S-Curve still exist?
by Urs Binggeli and Lucio Pompeo, McKinsey & Company; The S-Curve effect is the phenomenon by which airlines that have a high share of frequencies on a route can attain disproportionately high market shares. With the S-Curve in mind, network managers.....
Sep 2006   
Value chain profitability: summary report
Summary of full report
Jun 2006   
Profitability: Does Size Matter?
Last year eight airlines made operating profits over $500m, three earning more than $1bn. However, there is no correlation of size with profit margins and only a slight link with operating profits.
Jun 2006   
Value Chain Profitability
The airline industry has been unable to generate sufficient returns for existing investors. Unless invested capital is used more effectively - and returns improved - future investment will either be constrained or delivered inefficiently or both.
Jun 2006   
Airline profitability; US versus the rest
US airlines generated all of the $42 billion of net losses suffered by the global airline industry during 2001-2005. But it's not just a US problem. Even the profits made outside the US were insufficient to pay investors a 'normal' return on capital.
Dec 2005   
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