International airlines will see record earnings growth and carbon dioxide emissions next year as strong demand will outweigh the impact of cost pressures that reduced profitability in 2018, the International Air Transport Association (IATA) said on Wednesday.
According to Reuters, IATA said the airline industry's earnings are expected to rise to $ 35.5 billion in 2019, compared to $ 32.3 billion this year.
"The aviation sector now stands on a more solid financial footing than ever before," the union's general manager and chief executive, Alexander de Goniak, told reporters on the annual IATA news briefing in Geneva.
Brian Pierce, chief economist at IATA, said the bloc did not expect a recession in the coming period, but there were many concerns under the trade and foggy protection of Britain's exit from the EU, although the worst possible outcome of this separation is expected to slow down. Growth in the long run, but it will not stop.
He added that profit margins would continue to face pressure from non-oil wages and expenditures, despite falling fuel prices, as airlines around the world have seen rising dollar expenditures.
The return on equity is expected to stabilize at 8.6 percent this year and next year.
Governments need to work better, support competitiveness and policies that are conducive to business, said Don Goniak.
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