International Transport Forum Discussion Papers
ITF Discussion Papers make economic research, commissioned or carried out in-house at the International Transport Forum, available to researchers and practitioners. They describe preliminary results or research in progress by the author(s) and are published to stimulate discussion on a broad range of issues on which the ITF works.
- ISSN: 2223439X (online)
- https://doi.org/10.1787/2223439X
Airports in the Aviation Value Chain
Financing, Returns, Risk and Investment
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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