We’re creating a more connected travel industry, underpinned by sustainability and long-term investor relations.
At this year’s IATA World Financial Symposium, the topic at the forefront of everyone’s minds is this year’s profit margin, and how to improve on those figures. Julie Perovic, Senior Economist at IATA, gave everyone a figure to think about yesterday morning when she outlined that although the industry’s profit expectation in 2015 is $30bn, the profit per passenger is still at a mere $8.
Even taking this into account, the majority of the profits are achieved by North American carriers. It is clear that there is still a long way to go in order to achieve the sustainable global growth that is being discussed at this conference.
The airline industry has come a long way. Yesterday, Tony Tyler, Director General and CEO of IATA, outlined the growth the industry has experienced since IATA was founded 70 years ago. Today, aviation transports the same amount of passengers per day – 9.6 million – than it did in a whole year when the industry body was first founded in 1945. Other figures that Mr Tyler highlighted are the fact that aviation adds $2.4 trillion to the global GDP, as well as enriching the world in a myriad of other, non-monetary ways.
In Amadeus, we want to help airlines to be able to sustain that growth. We believe that by streamlining financial processes, airlines can boost both their top and bottom line, which is why we commissioned a report to explore the possibilities for airlines in this field. Alexander Michael, Director, Digital Transformation at Frost & Sullivan, will be discussing the findings this afternoon at the conference.
Check out this video for highlights of the IATA WFS event and to hear in Alexander’s words the techniques to improve your bottom line.