Seeking Alpha

IATA trims airline industry profit forecast

  • IATA revises its outlook for airline industry profit to $18.7B, lower than a previous forecast calling for $19.7B in profits.
  • The agency cites higher oil prices and a lack of international alignment of passenger rights as factors in the downward revision.
  • Cargo demand is forecast to improve 4% in 2014.
  • By region, North America is expect to see carriers generate the sweetest margins. The anticipated profit of $8.6B by North American airliners is more than double what counterparts in Europe will earn this year, says IATA.
  • Related stocks: AAL, UAL, DAL, RYAAY, CPCAY, SINGY, CEA, ZNH, CPA, GOL, LFL, DLAKF, AIDIF, QUBSF, JBLU, RJET, SAVE, ALK, HA, AIRYY, MLYAF, AFLYY.
Comments (2)
  • Brucejfern
    , contributor
    Comments (1480) | Send Message
     
    Airline stocks down today but the real question is who will benefit the most in a lower profit environment. My bets are with AAL and DAL.
    12 Mar 2014, 12:36 PM Reply Like
  • Pony01
    , contributor
    Comments (272) | Send Message
     
    DAL has the lowest cost for gallon of jet fuel. They have an aggressive hedging program and own the Trainer Refinery which reduces crack spreads for all airlines in the northeast. Notably, by using Bakken crude and increasing their output of jet fuel with Trainer Refinery upgrades, their lower fuel costs per gallon margin vis-a-vis the rest of the major U.S. carriers, will only increase.
    12 Mar 2014, 01:54 PM Reply Like
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