Global airline performance indicators published as IATA holds 73rd AGM

• Consumers benefit from lower real travel costs, more routes, and will spend 1% of world GDP on air transport in 2017
• Economic development is a big winner from the doubling of city pairs and halving of air transport costs over the past 20 years.
• Governments gain substantially from $124bn of tax this year and from over 69 million ‘supply chain’ jobs.
• Stronger economic growth is pushing traffic ahead of capacity growth, but breakeven loads rising as unit costs grow significantly.
• Equity owners see further gains in 2017; industry ROIC falls from record 2016 levels, but remains above the cost of capital.
• Credit metrics in 2017 not quite as good as 2016, but free cash flow yield remains positive and balance sheet metrics are stable.
• Jobs in the industry should reach 2.78 million, and GVA/employee is over $99,000, but unit labour costs accelerating.
• Infrastructure use costs are high, plus inefficiencies in Europe alone add 2.9bn Euros to airline costs next year
• N American airlines perform best with a forecast 7.2% net post-tax profit margin in 2017. Africa is the weakest with a 0.9% loss.

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