Financial organizations in the airline industry have a “vital” role to play in helping the sector negotiate a path through the current economic climate.
That’s according to the Aleks Popovich, Senior Vice President, Financial and Distribution Services at the International Air Transport Association (IATA).
Popovich’s comments followed the IATA announcement that the 2019 World Financial Symposium (WFS) will focus on the theme of ‘shaping a sustainable future’.
The airline industry is expecting to deliver a return on invested capital for a record fifth year—but just barely
“The airline industry is still earning money and we are expecting to deliver a return on invested capital for a record fifth year—but just barely,” said Popovich.
“Rising fuel prices, slowing demand growth, trade wars and geopolitical tensions all are challenging the industry’s fortunes. Airline financial organizations will play a vital role in helping to carry the business through this turbulence.
“WFS provides a forum for finance professionals across the aviation value chain, to discuss and debate the correct strategies to achieving a sustainable future.”
Airlines are expected to report their 10th consecutive annual profit in 2019, but earnings are being squeezed.
In June IATA downgraded its outlook to a net profit of $28 billion or just $6.12 per passenger, reduced from an estimated $30 billion in 2018.
The WFS, which will be held in Miami on 25-26 September, will see industry finance professionals gather to discuss the challenges facing aviation and how different facets of the value chain can work together to improve the sector for customers and stakeholders alike.
- Find out more about the WFS here