Battling headwinds

FIVE months in, and 2019 has already been an eventful year for the aviation industry.

In its December 2018 forecast, the International Air Transport Association (Iata) projected that the industry's collective bottomline should rise 10 per cent to US$35.5 billion this year, fuelled primarily by North American carriers. Revenue is projected to increase nearly 8 per cent to US$885 billion in 2019 as passenger numbers and cargo volumes expand, albeit with traffic growing at a slower clip compared to 2018. And all regions - save for Africa - are expected to turn a profit, with Asia-Pacific carriers expected to chalk up a combined net profit of US$10.4 billion this year.

However, Iata is due to release its latest forecast in early June, and there are signs that a downgrade could be in the works. According to a recent Reuters report, Iata director-general Alexandre de Juniac spoke of being a "bit pessimistic" and the industry being "at a turning point" at a meeting of aerospace industry officials in Paris. It appears that while the industry will still likely end the year in the black, it may not chalk up the kind of profits it envi…