Airline industry outlook.
The International Air Transport Association (IATA) predicts that the global airline industry will record a fifth year of profitable operations in 2016. The average profit margin is foreseen at 5.6%, with the industry meeting the cost of capital for the second consecutive year. This is the first period of economic sustainability in the airline industry's history.
Further consolidation is likely among North American airlines, but smaller carriers are reluctant to embark on major restructuring.
In Asia, the appetite for looser alliances and joint ventures will prevail over mergers and acquisitions.
Low-cost carriers offering cheap business class services, in addition to less expensive economy-class tickets, will pressure IATA members.
