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Airlines will generate a profit of US$18 billion this year the International Air Transport Association said, slightly moderating its previous industry outlook.
IATA pared its profit projection by $700 million in its second downward revision of its forecast for 2014 on slower growth in emerging markets and high fuel costs, reported Dow Jones Newswires.
The group, that represents more than 200 airlines, had in December forecast an industry-wide profit for 2014 of $19.7 billion. The industry made $12.9 billion profit last year.
Airlines should generate sales of $746 billion, said Tony Tyler, the global airline lobby group's chief executive. The sales projection is $1 billion above one given in March.
"Every day is still a struggle to keep revenues ahead of costs," Tyler said at the IATA's annual general meeting. "Our financial performance does not yet match the value we deliver," he said.
Average return on invested capital has risen to 5.4 percent from 1.4 percent in 2008, Tyler said.
Cargonews Asia
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