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Has volatile airline profitability become the new normal?
Patricia Simillon
Head of Strategic Marketing, Airlines, Amadeus IT Group
Whilst other players in the travel value chain have maintained relatively consistent profitability levels, IATA (Figure 1) found that the airline industry as a whole has only generated a surplus of income over expenditure in 4 of the previous 12 years.
Sustainability of airline profitability will remain a prime long-term concern for the entire airline ecosystem as it influences carrier strategies, tactics and priorities.
In response to the pressures on airline profitability, some airports are adopting their own pricing strategies. For example, Malaysia Airports have held landing and parking charges constant for the last 19 years.
Download our industry analysis, Reinventing the Airport Ecosystem , for more insight into the factors impacting airline profitability.
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