Airlines are running themselves into the ground

The IATA’s latest report shows the aviation industry is generating returns below the cost of its capital, but airlines continue to add capacity. For Qantas, this means more cost-cutting and no chance of a growth dividend.

The latest International Air Transport Association analysis of the state of the aviation industry highlights what a dysfunctional industry it is and provides context for the ongoing haemorrhaging and continuing shrinking of Qantas’ international business.

IATA expects the industry to make aggregate profits of $US18 billion this year (up from $US10bn last year but slightly down on its March forecast of $US18.7bn). That represents an average return on invested capital of only 5.4 per cent.



{{ twilioFailed ? 'SMS Code Failed to Send…' : 'An SMS verification code has been sent ...' }}

Hi {{ user.FirstName }}

Looks like you have already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to complete your SMS verification

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device

Verify your mobile number to proceed...

Please check your mobile number below and press the Send Verification Code button. This will be used to complete your verification in the next step.

Please sign up for full access


Updating information

Please wait ...


{{ productPrice }} / day
( GST included )
Price $0
GST $0
Discount -{{productDiscount}}
TOTAL {{productPrice}}
  • Mastercard
  • Visa

Please click on the ACTIVATE button to finalise your membership


The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device

Register as a new member

(using a different email)

Related Articles