20 March 2013 21:16 [Source: ICIS news]
HOUSTON (ICIS)--The global airline industry outlook for 2013 looks a little better despite higher-than-expected average fuel costs, an industry association said on Wednesday.
Airlines should produce a combined net post-tax profit margin of 1.6%, up from the previously forecast 1.3%, with a net post-tax profit of $10.6bn (€8.3bn), according to the International Air Transport Association (IATA).
“The economic optimism is also pushing fuel prices higher. We are seeing a $12bn improvement in revenue, and a $9-10bn increase in costs — most of which is related to fuel,” said Tony Tyler, IATA’s director general and CEO.
Jet fuel is now expected to average $130/bbl for 2013 globally, up from $124.3/bbl that was projected in December, the IATA said.
Overall, fuel will account for 33% of airline costs, unchanged from 2012.
($1 = €0.78)
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