Call for an instant quote
0345 90 80 161
Open Mon to Fri 09:00 - 17:30 | Sat 09:00 - 16:00 (GMT)
06 June 2016 07:41
Global airline profits are expected to rise again
Every time a holidaymaker sets foot on a plane an international airline typically makes £7.22 out of them.
This is the share of an average flight ticket that goes to global air firms, according to the industry's trade body.
Iata's latest estimates show that worldwide airline profits will probably see an 11% hike from £24.5 billion last year to £27.3 billion this year. This is £2.1 billion up on its original December 2015 forecast.
Tumbling oil prices plus more plane passengers have forced them to revise their earlier predictions. Such updated figures would bring a fifth successive year of growth.
Why travel insurance is just the ticket
Wherever flyers' ticket money goes, they know that they buy themselves peace of mind if they invest in travel insurance.
This is because it covers them if their flights are delayed, cancelled or abandoned.
Such insurance also protects holidaymakers against lost luggage, stolen property or mislaid documents.
How Iata has arrived at its new forecasts
The trade body reckoned on oil costs being typically 17% lower in 2016 than they were in 2015 and passenger demand to be 6.2% greater.
What the expert says
Tony Tyler, director-general of Iata, described the improvement in profitability as being a "significant achievement" for the aviation sector.
He said: "On average, airlines will make 10.42 US dollars (£7.22) for each passenger carried. In Dublin, that's enough to buy four double-espressos at Starbucks.
"Put another way, for every 100 US dollars (£69) in sales that Starbucks makes, their net profit is over 11 US dollars (£7.62) but airlines will only make 5.60 US dollars (£3.88)."
The expert concluded: "We don't begrudge Starbucks their profitability, but there is clearly still upside for airlines."
20 January 2017
Winter sports enthusiasts are being urged to check they have the right insurance after new research shows only 1 in 6 people are covered under their standard travel insurance policy.
19 January 2017
Nearly 1,000 people have had their holidays in Gambia cut short amid growing political unrest in the African state.
18 January 2017
Researchers at Cambridge University may have made a breakthrough in the treatment of Parkinson's disease, according to preliminary findings.
17 January 2017
Stansted Airport has made a bid to become Britain's next hub for long-haul travel, as passengers are promised seamless connection facilities and baggage transfer.
13 January 2017
Long-term goals such as travelling more and visiting new places have come above healthy eating and changing jobs in a list of the top New Year's resolutions.
14 January 2017
Some of the biggest airports in the UK have been forced to cancel flights as snow and blizzard conditions sweep parts of the country.
Stress could be as significant a risk factor for heart attacks and strokes as smoking, drinking and overeating, new research shows.
24 December 2016
Planned strikes by British Airways cabin crew on Christmas Day and Boxing Day have been suspended amid continuing industrial unrest ahead of the weekend break.
11 January 2017
A connection between diabetes and inflection in children could be a major breakthrough in developing a cure for type 1 diabetes, according to new research.
10 January 2017
A new trial aimed at tackling widespread loneliness among older people is successfully reducing isolation using community-based tactics, a report shows.
07 January 2017
People may be able to enjoy better brain health in later life by following a Mediterranean diet, research has suggested.
06 January 2017
Many Britons plan to cut down on the costs of their holidays in 2017, as part of their financial resolutions for the New Year.