GENEVA: Travellers might soon be able to pay less to fly, International Air Transport Association (IATA) chief said on Wednesday, after the global airline association predicted record profits for the sector due to plunging oil prices.
Airlines are now expected to make US$19.9 billion (RM69.45 billion) in profits this year and US$25 billion next year, more than double from US$10.6 billion in last year.
“Lower oil prices and stronger worldwide gross domestic product growth are the main drivers behind the improved profitability,” IATA said in a statement.
Crude prices have plunged by more than 40 per cent since June, owing in part to a glut in supplies as the United States ramps up shale production.
IATA chief Tony Tyler said travellers also stand to benefit from the sliding crude prices.
“Stronger industry performance is good news for all. It’s a competitive industry and consumers will see lower costs next year as the impact of lower oil prices kick in,” he said.
“And a healthy air transport sector will help governments in their overall objective to stimulate the economic growth needed to put the impact of the global financial crisis behind them at last,” said Tyler.
IATA’s forecast is based on an average Brent price of US$85 a barrel and jet fuel price of US$99.90 next year. AFP