Despite rising costs, airlines showing strong profits

The rising costs within the aviation industry have not dampened an expected year of solid performance, despite triggering a downward revision in forecasts and a slow downward trend in profits at the operating level. Despite accelerating costs, particularly fuel and labour costs, and an upturn in the interest rate cycle, airlines are expected to achieve an aggregate net profit of $33.8-billion this year, down from a December forecast of $38.4-billion.