- Title: Global airlines group expects industry profits to top $30 billion
- Date: 5th June 2017
- Summary: SCREEN ON A FLIGHT SIMULATOR ON DISPLAY AT THE IATA MEETING
- Embargoed: 19th June 2017 22:26
- Keywords: Mexico Cancun system flights shutdown study British Airways
- Location: CANCUN, QUINTANA ROO, MEXICO
- City: CANCUN, QUINTANA ROO, MEXICO
- Country: Mexico
- Topics: Company News Markets,Economic Events
- Reuters ID: LVA0026K05VT3
- Aspect Ratio: 16:9
- Story Text: The heads of global airlines are meeting in Cancun, Mexico for the general meeting of the International Air Transport Association (IATA), with the aviation body predicting robust earnings for the sector.
Forecasting a third straight year of robust earnings, IATA raised its 2017 industry profit outlook on Monday (June 5) to $31.4 billion dollars, up from a previous forecast of $29.8 billion dollars.
The IATA also raised its outlook for 2017 industry revenue to $743 billion from $736 billion dollars on expectations that the global economy will post its strongest growth in six years.
The forecast underscored a new golden age for airlines' profitability even as carriers scramble to meet fast-changing electronics restrictions, pressure to limit emissions and unprecedented scrutiny on social media over their every mistake.
Another hot topic at the meeting was British Airways' recent shutdown of its data centre. The incident knocked out its systems and left 75,000 people stranded over a bank holiday. Its parent company's CEO, Willie Walsh, told journalists an investigation has been launched.
According to reports, the shutdown occurred when an electrical engineer disconnected the uninterruptible power supply, therefore shutting down the data centre.
High on the agenda was climate change. Days after the United States withdrew from the Paris Accord, global airlines have made a full-throated defence of globalisation. IATA General Director Alexander de Juniac told Reuters it was in the U.S.'s interest to back the CORSIA industry emissions accord.
The 73rd IATA general meeting will wrap up on Wednesday (June 6).
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