Global airline sector facing worst performance post financial crisis

Nearly 75 years after International Air Transport Association (IATA) — a trade body representing international airlines — was formed, the airline industry is facing its worst performance post the global financial crisis during the late 2000s, largely because of the trade war between the US and China.

But there is a silver lining. Year 2020 may not be that bad, as industry profitability is expected to stabilise, though its growth at 4.1 per cent will be much less than the 4.2 per cent growth rate recorded this year.

According to IATA forecast, the global airline industry will make a net profit of $29.3 billion in 2020, up over $25.9 billion expected in 2019 (revised downward from a $28-billion forecast in June).