International Transport Forum Discussion Papers

2223-439X (online)
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The International Transport Forum at the OECD is an intergovernmental organisation with 54 member economies. It acts as a strategic think tank for transport policy and organizes an annual summit of ministers. Our work is underpinned by economic research, statistics collection and policy analysis, often undertaken in collaboration with many of the world's leading research figures in academia, business and government. This series of Discussion Papers is intended to disseminate the ITF’s research findings rapidly among specialists in the field concerned.
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Airports in the Aviation Value Chain

Financing, Returns, Risk and Investment You or your institution have access to this content

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Mike Tretheway1, Kate Markhvida1
Author Affiliations
  • 1: InterVISTAS Consulting Inc., Canada

28 May 2013
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The global airline industry is slowly returning to profitability, but there is a long and difficult road ahead. According to IATA, the industry raised a profit of $8 billion in 20112 and it is forecasted to make a profit of $11 billion in 2013.3 However, these improved profit margins continue to be razor thin – in the best of times the airline industry earns only a modest 1-2% net profit margin on revenue. Volatile fuel prices, economic downturns, impacts of terrorism and natural disasters (hurricanes, volcanic ash, tsunamis), pandemics and government austerity measures are among the key factors that will continue to affect airline profitability...
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