Annual Review 2019 - IATA
Page content transcription
If your browser does not render page correctly, please read the page content below
Contents Contents Contents 04 Members’ list 06 Chairman’s message 08 Director General and CEO’s message 10 Industry story 16 Safety 22 Security 24 Regulation and taxation 30 Infrastructure 36 Environment 2 3 40 Cargo 46 Passenger experience 52 Financial services 56 About IATA IATA Annual Review 2019 IATA Annual Review 2019 Alexandre de Juniac Director General & CEO International Air Transport Association Annual Review 2019 75th Annual General Meeting, Seoul, June 2019 Note: Unless specified otherwise, all dollar ($) figures refer to US dollars (US$).
Members’ list Members’ list Members’ list M Mahan Air Malaysia Airlines S S7 Airlines Safair V Vietjet Vietnam Airlines W Wamos Air WDL Aviation Malindo Air SAS Virgin Atlantic WestJet Asiana Airlines Corsair International Mandarin Airlines SATA Air Acores Virgin Australia White Airways A Atlantic Airways Croatia Airlines I Martinair Cargo Saudi Arabian Airlines Vistara Wideroe Adria Airways Atlas Air Cubana MasAir SaudiGulf Airlines Volaris Aegean Airlines AtlasGlobal Cyprus Airways Iberia Mauritania Airlines SCAT Airlines Volotea X Aer Lingus Austral Czech Airlines Icelandair International SF Airlines Vueling Aero Republica Austrian Interjet MEA Shandong Airlines Xiamen Airlines Aeroflot Avianca D Iran Air MIAT Mongolian Airlines Shanghai Airlines XL Airways France Aerolineas Argentinas Avianca Brasil Iran Airtour Airline Mistral Air Shenzhen Airlines Aeromexico Avianca Costa Rica Delta Air Lines Iran Aseman Airlines MNG Airlines Sichuan Airlines Africa World Airlines Avianca Ecuador DHL Air Israir Montenegro Airlines Silk Way West Airlines Aigle Azur Avianca Peru DHL Aviation Myanmar Airways SilkAir Air Algerie Azerbaijan Airlines International Singapore Airlines J Air Arabia Air Astana Azores Airlines Azul Brazilian Airlines E Japan Airlines SKY Airline Smartavia New Members N Air Austral Eastar Jet Jazeera Airways Solomon Airlines Air Baltic Egyptair Jeju Air NCA Nippon Cargo Airlines Somon Air IATA’s membership continues to grow. B Air Botswana El Al Jet Airways Neos South African Airways Between June 2017 and May 2018, Air Burkina Bahamasair Emirates Jet Lite India Nesma Airlines South African Express 13 airlines joined IATA’s ranks, from all Air Cairo Bangkok Airways Ethiopian Airlines JetBlue Nile Air Airways parts of the globe and representing a Air Caledonie Batik Air Etihad Airways Jin Air Nordwind Airlines SpiceJet multitude of business models. Air Canada Belavia Belarusian Airlines EuroAtlantic Airways Jordan Aviation Nouvelair SriLankan Airlines Air Caraibes BH Air European Air Transport Juneyao Airlines SunExpress In Africa, Congo Airways, the flag 4 Air China Biman Bangladesh Airlines Eurowings O Suparna Airlines carrier of the Democratic Republic 5 Air Corsica Binter Canarias EVA Air K Surinam Airways of Congo, applied for and gained Air Dolomiti Blue Air Evelop Airlines Okay Airways SWISS Air Europa Blue Panorama Kenya Airways Olympic Air Syrianair membership. Air France BoA Boliviana de Aviacion Kish Air Oman Air F Asia-Pacific and North Asia boasts Air India Braathens Regional Aviation KLM Onur Air T seven new members. Fuzhou Airlines, Air Italy British Airways FedEx Express Korean Air Overland Airways Air Koryo Brussels Airlines Fiji Airways Kunming Airlines TAAG Angola Airlines Kunming Airlines and Urumqi Air Air Macau Bulgaria Air Finnair Kuwait Airways P TACA are passenger-focused airlines. Air Madagascar flybe TACV Cabo Verde Airlines Hong Kong Air Cargo, meanwhile, Air Malta flydubai Pegas Fly Tame concentrates on the cargo market. C L Air Mauritius FlyEgypt Pegasus Airlines TAP Portugal Thai Smile, a wholly-owned subsidiary Air Moldova CAL Cargo Airlines Freebird Airlines LAM PGA Portugalia Airlines TAROM of Thai Airways, flies regional routes Air Namibia Camair-Co Fuzhou Airlines Lao Airlines Philippine Airlines Tassili Airlines out of Bangkok, Spice Jet from India, Air New Zealand Cambodia Angkor Air LATAM Airlines Argentina PIA Pakistan International Thai Airways International Air Niugini Capital Airlines LATAM Airlines Brasil Airlines Thai Lion Air and Solomon Airlines, the national G carrier of the Solomon Islands, make Air Nostrum Cargojet Airways LATAM Airlines Colombia Precision Air Thai Smile Air Peace Cargolux Garuda Indonesia LATAM Airlines Ecuador Tianjin Airlines up the remainder of Asia-Pacific’s Air Serbia Caribbean Airlines Georgian Airways LATAM Airlines Group TUIfly latest IATA members. Q Air Seychelles Carpatair Germania Flug AG LATAM Airlines Paraguay Tunisair Air Tahiti Cathay Dragon GOL Linhas Aereas LATAM Airlines Peru Qantas Turkish Airlines In Europe there were four new IATA Air Tahiti Nui Cathay Pacific Gulf Air LATAM Cargo Brasil Qatar Airways T’way Air members. Air Dolomiti, part of the Air Transat Cayman Airways GX Airlines LATAM Cargo Chile Lufthansa Group, accompanied Air Vanuatu China Airlines LIAT Airlines R U Cyprus Airways, Germania Flug AG, AirBridgeCargo Airlines China Cargo Airlines Loong Air H and XL Airways France in joining. Aircalin China Eastern LOT Polish Airlines Ravn Alaska Ukraine International Airlines Airlink China Express Airlines Hahn Air Lucky Air Rossiya Airlines UNI AIR Alaska Airlines China Postal Airlines Hainan Airlines Lufthansa Royal Air Maroc United Airlines Ravn Alaska, a US-based airline that specializes in serving smaller IATA Annual Review 2019 IATA Annual Review 2019 Alitalia China Southern Airlines Hawaiian Airlines Lufthansa Cargo Royal Brunei UPS Airlines Allied Air CityJet Hebei Airlines Lufthansa CityLine Royal Jordanian Ural Airlines communities in its home state of AlMasria Universal Airlines Comair Hi Fly Luxair RwandAir Urumqi Air Alaska, also became an IATA member. American Airlines Condor Hong Kong Air Cargo UTair ANA Congo Airways Hong Kong Airlines Uzbekistan Airways Arik Air Copa Airlines Hong Kong Express Airways Arkia Israeli Airlines Corendon Airlines
H.E. Akbar Al Baker, Chair, IATA Board of Governors & CEO Qatar Airways H.E. Akbar Al Baker, Chair, IATA Board of Governors & CEO Qatar Airways Future air travel must be There is growing pressure on the environmental performance of aviation and the industry must continue to do IATA Board Of Governors 2018–2019 effortless and sustainable CHAIR OF THE BOARD María José ALSO SERVED all it can. But people who shun aviation Akbar Al Baker Hidalgo Gutiérrez (To June 2018) Chief Executive Officer Chief Executive Officer Safwat Musallam or who think aviation should be taxed QATAR AIRWAYS AIR EUROPA Chairman and Chief don’t realize what an economic collapse Executive Officer would happen. Aviation supports 65 MEMBERS Rupert Hogg EGYPTAIR million jobs and $2.7 trillion in global Ahmed Adel Chief Executive Officer H.E. Akbar Al Baker, Chair, IATA Board GDP. Without this unique means of Chairman and Chief CATHAY PACIFIC (To October 2018) Executive Officer Franck Terner transportation, people will not be able of Governors & CEO Qatar Airways EGYPTAIR HOLDING CO Harry Hohmeister Chief Executive Officer to cross the world to do business, to (representing EGYPTAIR) Chairman AIR FRANCE boost local economies, or to meet AUSTRIAN AIRLINES their loved ones. Yuji Akasaka (To November 2018) President Alan Joyce Tan Wangeng JAPAN AIRLINES Chief Executive Officer President and Chief What were your top priorities An effortless travel experience will be It is important to the future of our Do governments fully appreciate QANTAS Executive Officer as IATA Chairman? so important going forward. Travelers industry and to the future of our the contribution of aviation? Saleh N. Al Jasser CHINA SOUTHERN are becoming tired of overregulation, children and grandchildren that Director General Liu Shaoyong AIRLINES It was to represent, lead, and serve our the endless processing they must there is enough investment by Governments are using aviation as a SAUDI ARABIAN Chairman AIRLINES CHINA EASTERN (To March 2019) industry with strength and humility. suffer, and the laborious security aircraft manufacturers, engine cash cow. For example, they collect AIRLINES David Bronczek checks. Let me be clear, I don’t blame manufacturers, and other supply taxes for the environment but what Enrique Cueto President and Chief IATA plays a very important part in our the authorities for these thorough chain partners to produce equipment do they do with the money? Nobody Chief Executive Officer Sebastian Mikosz Operating Officer industry. As a crucial instrument for processes when our world is passing that promotes sustainability and knows. If governments were really LATAM AIRLINES Group Managing FEDEX CORPORATION Director and CEO airlines, it is important that members, through a very difficult time. But the makes our industry more efficient. serious about the environment, they German Efromovich KENYA AIRWAYS (To March 2019) governments, and the general public industry, through IATA, can speak would comply with the international Chairman Naresh Goyal perceive IATA in the right way. This is in one voice and help authorities agreements that they sign. Instead, AVIANCA Pham Ngoc Minh Chairman not just a rubber stamp organization. and regulators achieve our shared they hit aviation with so-called green Chairman JET AIRWAYS But we’ve started the process to security goals, while improving the taxes to meet general budgetary Pieter Elbers VIETNAM AIRLINES President and Chief (To April 2019) 6 improve the association’s activities passenger experience. requirements and do nothing for the Executive Officer Oscar Munoz Yang Ho Cho 7 and it was my privilege and duty environment. So they are taking the KLM ROYAL DUTCH Chief Executive Officer Chairman and Chief during the past year to make sure that What steps should the industry money from us but doing very little. AIRLINES UNITED AIRLINES Executive Officer we kept on developing initiatives while take to earn a better reputation KOREAN AIR Mohamad El-Hout Christine providing greater accountability and for sustainability? Governments must reinvest the Chairman and Director Ourmières-Widener enhanced oversight. money from environmental taxes in General Chief Executive Officer The most important thing is the industry to help us achieve further MIDDLE EAST AIRLINES FLYBE LIMITED Together with the board of governors, the leadership with CORSIA. sustainability success. there was a continued effort to The industry has long been Luis Gallego Martín Douglas Parker Chief Executive Officer Chairman and Chief ensure that these improvements a leader in environmental Any final thoughts on the year? IBERIA Executive Officer endure in the long term. efforts and aims to halve AMERICAN AIRLINES net carbon emissions I’d like to thank all my colleagues Tewolde GebreMariam Where do you see the most by 2050 compared on the IATA Board for their active Group Chief Executive Calin Rovinescu Officer President and Chief important future innovations with 2005. participation throughout the year, and ETHIOPIAN AIRLINES Executive Officer for the airline industry? their commitment to building a safer, AIR CANADA stronger, and better industry. I must Goh Choon Phong IATA has a number of important make a particular mention of Mr. Yang Chief Executive Officer Benjamin Smith projects underway. New Distribution Ho Cho, Chairman and CEO of Korean SINGAPORE AIRLINES Chief Executive Officer AIR FRANCE / KLM Capability, One ID, and Radio Air, who sadly passed away in April. Rickard Gustafson (representing AIR Frequency Identification (RFID), He will be much missed from the IATA President and Chief FRANCE) for example, are innovations which Board, by his airline colleagues, and Executive Officer will make future travel effortless most of all by his family and friends. SAS Carsten Spohr Chairman and Chief and seamless for passengers. And His contribution to aviation and to Robin Hayes Executive Officer they will do so while also bringing Korea was incalculable. President and Chief LUFTHANSA efficiencies into our industry and Executive Officer letting airlines keep their brand JETBLUE AIRWAYS Wang Changshun and identity. Chairman Pedro Heilbron CHINA SOUTHERN Executive President and AIRLINES IATA Annual Review 2019 IATA Annual Review 2019 Chief Executive Officer COPA AIRLINES
Alexandre de Juniac, Director General and CEO Alexandre de Juniac, Director General and CEO Aviation is an amazing Preparations for CNG took a giant step in January 2019 with airlines beginning their emissions monitoring for the The industry agenda is broad. Travelers will appreciate the technology driven innovations such IATA is proud to lead, represent and serve the airline industry as we address these and other issues industry. I call it the Carbon Offsetting and Reduction as the One ID program to smoothly with governments and industry Scheme for International Aviation move travelers through the airport stakeholders. Our vision is to work (CORSIA). Agreed by the International with a single biometric token, and together with our almost 300 member business of freedom Civil Aviation Organization (ICAO) in plans to enhance baggage tracking. airlines to shape the future growth 2016, CORSIA was approved with the Parallel efforts to modernize slot of a safe, secure and sustainable air full support—indeed with the urging— allocation rules, reform airspace transport industry that connects and of the aviation industry. management and find better means enriches our world. to fund infrastructure development Alexandre de Juniac, Director General and CEO CORSIA is just one pillar of the will deliver less visible but equally industry’s commitment to stabilize important gains. net carbon emissions from 2020, and I to cut its net carbon footprint to half People n 2018 the world’s airlines provided The threat of trade wars and We can be fully confident that a the 2005 level by 2050. And science People are the key resource to about 4 billion passengers the protectionist activity also looms technical solution will be found to tells us that fulfilling this will be take aviation forward. Our industry freedom to travel over a global large. Globalization has made our address the issues that have been consistent with the 1.5-degree-goal provides high quality jobs that network of some 22,000 routes. world more prosperous. And aviation identified. But there are critical of the Paris Agreement. add value to economies in which The average cost of this transport will play a central role in enabling questions still to be answered. What they are located. Aviation careers Alexandre de Juniac was half that of two decades ago. a more inclusive globalization that more can be done to ensure the safe But there is urgent need to more are attractive, but there is growing Director General and CEO And since 2010 the carbon footprint spreads its benefits more evenly. introduction of new technology? concretely demonstrate the ambition concern about how the industry per passenger has reduced by But we must be firm in insisting on How can we reinforce collective of our commitments. And we must be will find sufficient technically skilled aboout 2.8% per year. borders that are open to people and international confidence into state relentless in our efforts to insist that employees quickly enough to keep to trade, or the benefits of aviation certification systems? And how can CORSIA is effectively implemented, pace with demand. Last year, airlines also enabled the will be severely curtailed. authorities and the industry coordinate that strategic investments are made freedom to do business globally by better to maintain public confidence? to commercialize sustainable aviation There are no easy answers, but 8 transporting 64 million tonnes of Over the next two decades, the fuels and that the bottlenecks in it is clear that increasing female 9 cargo to markets around the world. demand for air transport is expected Security air traffic management are sorted. participation in the industry is This activity supported a third of to double. The ability to successfully Security is an equal partner to Together with continued investment a tremendous opportunity. global trade by value, generated 65 meet this demand will require the safety. Flying is secure. But the level in greener technologies, these will Finding ways to balance gender million jobs and underpinned $2.7 industry to excel in several areas. of international cooperation and deliver a significant reduction in diversity in all job categories trillion of GDP. And, as aviation remains a highly information sharing by governments aviation’s carbon footprint. will provide huge potential to regulated industry, governments will who have the primary responsibility strengthen our business and In 2018 the world’s airlines earned play a key role. With the 40th ICAO for security continues to lag behind Infrastructure ensure the people we need to a collective net profit of $30 billion. Assembly scheduled for late in 2019 that of safety. Moreover, many states Meeting the demand for connectivity sustain the industry. Industry revenues topped $812 we have an important opportunity struggle to implement the baseline depends on availability of billion and 8% return on invested to engage government action at the international security standards in infrastructure. In many parts of the Your association capital was generated. global standard-setting level. Annex 17 of the Chicago Convention. world we already struggle with the The industry counts on IATA. physical limitations of available Global standards developed In each year since 2010 the airline Safety The industry strongly supports the airports and airspace. As demand by our members through industry earned an aggregate profit. Air transport is the safest form of development of the Global Aviation grows that will only get more acute. IATA underpin day-to-day And since 2015 that profit has long-distance travel. And all involved Security Plan through ICAO as a operations worldwide. Our exceeded the average cost of capital. with aviation are committed to making means of taking a major forward. Reminding governments to work efficient settlement systems now While some airlines continue to face it ever safer. That was confirmed with the industry to build sufficient settle over $460 billion annually. financial challenges, this nine-year again in 2018 when the industry’s Sustainability infrastructure at affordable cost And IATA’s products and services profitability streak at the industry level safety performance showed marked The October 2018 publication of will continue to be a long-term top are tailored to help the success of marks a major shift from the sector’s improvement on the ten year average. a UN assessment of the world’s priority. And in the short term there is our members while funding industry historic boom-bust financial cycle. But two tragic crashes with the newly progress towards containing climate enormous potential to deliver greater activities. As your trade association, introduced Boeing 737 Max have change to the Paris Agreement’s efficiency and a better customer IATA’s global workforce is fully The industry’s newly found financial knocked the industry’s heretofore aims raised alarm bells. Aviation, experience with the infrastructure focused on adding value to the resilience enables it to weather shifts impressive reputation. along with all industries, is coming we currently have. businesses of our members. in the operating environment without under even greater environmental plunging into crisis. Nonetheless, we scrutiny. In Europe, the pressure is expect profits to be squeezed in 2019 particularly intense. IATA Annual Review 2019 IATA Annual Review 2019 as a result of oil price volatility, rising costs for labor and infrastructure, We must not forget that aviation was ever-increasing taxation, and a among the first industries, if not the tapering of demand. first, to outline a plan to achieve carbon neutral growth (CNG). And we are committed to achieve it from 2020.
Industry story Industry story 01 Industry story Empowering industry profitability despite challenges 10 11 IATA Annual Review 2019 IATA Annual Review 2019
2. Air tourist spending and value 1. Unique city pairs and real transport costs of trade carried by air 22,000 1.6 Industry story Industry story 950 8,000 Number of unique city pairs Air tourist spending ($ billion) Real cost of air transport ($/RTK, in 2014 prices) 1.5 Value of trade by air ($ billion) 20,000 850 7,000 1.4 18,000 1.3 750 6,000 Air transport connected more Passenger demand The US O-D passenger market 1.2 16,000 650 5,000 cities at lowered cost was again robust remained the world’s largest 1.1 In 2018, airlines continued to increase Demand for air passenger services Although China’s domestic market 14,000 550 4,000 1.0 the number of city-pair routes remained strong in 2018, with added the most passenger journeys 12,000 0.9 450 3,000 globally. Almost 22,000 city pairs are industry-wide revenue passenger in 2018, the US domestic market— 0.8 now regularly serviced by airlines. kilometers (RPK) increasing 7.4%. where almost 590 million passenger 10,000 350 2,000 This is an increase of 1,300 over the This represented a slowdown from journeys were undertaken in 2018— 0.7 number of city-pair connections the decade-high pace recorded in continues to be the world’s largest 8,000 0.6 250 1,000 in 2017. Strong improvements in 2017, of about 8%, but still exceeded single O-D market. China comes 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 20 20 connectivity and in costs over the the long-run industry average second, with 515 million, followed past two decades—the real, inflation- growth rate by around 2 percentage by India some distance back, at 116 adjusted cost of air transport has points. Air passenger demand was million. Unsurprisingly, domestic 3. Accessibility of air travel 4. RPK versus world GDP growth halved in the past 20 years and underpinned by a generally solid markets dominated the rankings. 5.0 50 16 declined further in 2018—help to global economic backdrop, especially The top 12 markets accounted for Scheduled air pax (billion) RPK (% year on year) 9 ensure that aviation, the “business earlier in the year, which, in turn, almost half of the total number of O-D 4.5 Number of months before next trip 45 14 World GDP (% year on year) 7 of freedom,” continues to distribute supports jobs, incomes, and business passenger journeys in 2018. 40 12 4.0 its array of benefits to consumers, activity, and by fierce competition in Chart 6 35 10 5 suppliers, and economies globally. the industry, which helps to ensure 3.5 30 8 Chart 1 airfares remain affordable Air freight demand 3.0 25 6 3 to travelers. growth eased 20 4 2.5 Air transport supported Chart 4 Air freight grew slightly in 2018 1 15 2 economic growth and compared with 2017. Buoyed by 2.0 prosperity through China added the most the global inventory restocking 1.5 10 0 -1 tourism and trade passenger journeys cycle, industry-wide freight tonne 5 -2 1.0 -3 Air transport is central to world There were close to 4 billion origin- kilometers (FTK) increased 9.7% in 0 -4 tourism and trade. Tourists traveling destination (O-D) passenger journeys 2017. In 2018, FTK likewise grew, 20 0 20 1 20 2 20 3 20 4 05 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 16 20 7 18 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 20 20 20 20 internationally by air are estimated worldwide in 2018. Among them, but a mere 3.4%. This was in line 12 to have spent about $850 billion in domestic routes within China again with global trade volumes, which 13 2018, an increase of more than 10% provided the largest incremental trended broadly sideways in the 5. Top 10 increasing O-D markets 6. Largest O-D air passenger markets over 2017. The additional number of increase in passenger trips, adding first part of 2018 and contracted in city-pair connections and the lower just under 50 million journeys. The the year’s fourth quarter. The lesser China domestic 10.5 600 60% cost of air transport also boosts trade domestic markets of the United increase for air freight also reflected 5.7 US domestic 50% in goods and services and heightens States and India once more ranked the typical slowdown following an 500 India domestic 18.5 foreign direct investment and other second and third, with around 30 inventory rebuild. 9.3 400 40% important economic flows. Air million and 18 million more passenger Indonesia domestic transport accounts for only a small, journeys, respectively. Of the main The second half of the year also Russia domestic 13.3 300 30% less than 1%, proportion of world markets that IATA regularly tracks, saw the industry face a number of Mexico domestic 12.0 Market size (million pax) trade by volume but for a much larger India’s domestic market showed the headwinds. There was a moderation Spain domestic % year-on-year growth rates 13.3 200 Cumulative share of total pax 20% share by value, of about 33%. In 2018, fastest growth in passenger numbers, in world trade—a result in part of the Japan domestic 3.7 the value of goods carried by air is which increased 18.5% in 2018. That heightened trade tensions between Brazil domestic 4.5 100 10% estimated to have been $6.7 trillion. India recorded its 50th consecutive the United States and China—and Iran domestic 32.8 Chart 2 month of double-digit, year-on-year a deterioration in some leading 0 0% 0 5 10 15 20 25 30 35 40 45 50 growth in RPK in October highlights indicators, such as the new export Ch om In om ne om Ja dom Br om om Ru dom ex om Sp m K Sp om m Tu n-U do do Air travel was more accessible d d d d il d d d the consistently strong performance orders component of the global Additional pax in 2018 (million) US a a sia n lia ia o ey n ai az in di pa ai ic ss ra rk st for more people of its market Purchasing Managers Index. Having do M Au In Worldwide air passenger numbers Chart 5 said that, not all air freight sectors 7. Air freight versus global goods trade growth continued to rise, exceeding 4.3 were equally affected. E-commerce Industry FTK (% year on year) billion journeys in 2018. Connecting and pharmaceuticals continued to 25 25 World goods trade (% year on year) cities directly cuts the cost of air perform strongly. 20 20 transport by saving time for shippers Chart 7 and travelers. Combined with 15 15 cheaper fares, this enables more 10 10 people to fly more often. In 2000, the 5 5 average citizen flew just once every 44 months. In 2018, the time between 0 0 IATA Annual Review 2019 IATA Annual Review 2019 trips had halved, to just 21 months. -5 -5 Chart 3 -10 -10 -15 -15 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 20
8. Regional passenger and 9. Industry passenger and freight demand outcomes freight load factors 85 56 Industry story Industry story 10% 10% RPK 83 FTK 54 8% 8% 81 52 79 Regional outcomes for December. The price of jet fuel has Regional financial 6% 6% 77 50 passenger and freight subsequently begun to rise in the early performance was again mixed 75 48 demand were mixed months of 2019. But the sharp and Regionally, the industry’s financial 4% 4% 73 46 Regions saw varied performance in unanticipated nature of the decline performance remained considerably 71 passenger and freight demand in 2018. at year-end means that many airlines varied. The financial performance 44 2% 2% 69 Airlines from Asia-Pacific led the way that hedge their fuel exposure are of the North American airlines Passenger load factor (% of available capacity) 42 in passenger growth, which increased unlikely to have seen much benefit continued to lead the way, delivering 67 Freight load factor (% of available capacity) 9.5% in that region, followed by airlines from the price adjustment so far. an operating (EBIT) margin of 9.1% in 0% 0% 65 40 a c pe a st a ry ric ic ic ifi in Europe and in Latin America. For 2018. Airlines in Europe, Asia-Pacific, Ea st Chart 10 ro er er ac Af du Eu e Am Am 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 -P dl 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 In ia freight, it was the Latin American and Latin America also yielded 20 id tin rth As M La No carriers that outperformed, followed Airlines raised their achieved solid profitability, while carriers in by carriers in North America. Freight load factor and maintained a the Middle East and in Africa faced volumes for African airlines were gap above the breakeven level especially challenging operating 10. World oil and jet fuel prices 11. Breakeven and achieved load factors broadly stable in 2018, but this should With oil prices, interest rates, and environments. 100 100 70 70 be viewed in the context of their robust such other key costs as labor rising Chart 13 24% growth in volume in 2017. further in 2018, the estimate for the 90 68 68 90 Chart 8 industry-wide breakeven load factor On a per passenger basis, the airline $/barrel (monthly average data) increased to 65.9%. Aided, however, industry is a high-volume, low-margin 80 80 66 66 Passenger load factor by the record PLF cited previously, industry. Considering net profits on achieved a record as demand the combined achieved load factor a per passenger basis highlights 70 70 64 64 growth exceeded capacity also rose, enabling airlines to maintain this and presents an alternative 60 62 62 Available seat kilometers (ASK) a solid gap above the level required perspective on regional airline 60 Brent crude oil increased 6.9% globally in 2018 for financial breakeven. The gap profitability. By this measure, the Jet fuel 50 50 60 Achieved load factor (% of ATK) 60 compared with 2017, slightly lower between the breakeven and achieved industry generated a modest $6.85 Breakeven load factor (% of ATK) than the 7.4% RPK increase in load factors is driving profitability per passenger in 2018. Regionally, 40 58 58 40 passenger demand. As a result, the and returns and was again a critical the North American carriers were De 8 18 passenger load factor (PLF) ticked up contributor to the industry’s financial the best performers, earning $14.66 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 Fe 8 M 8 Ap 8 M 8 Ju 8 18 Au 8 Se 8 O 8 No 8 Fe 9 19 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 1 -1 r-1 -1 l-1 1 1 -1 1 v- c- 20 n- b- n- g- p- n- b- ar ct ay Ju Ja Ja 14 slightly to a record 81.9%. The PLF performance in 2018. per passenger. At the other end of 15 has risen more than 10 percentage Chart 11 the spectrum were airlines in Africa points over the past 15 years. And and Latin America. In aggregate, they 12. Industry return on investment this increase is behind the improved Another solid financial averaged a loss of $1.09 and $1.65, and the cost of capital 13. Regional profit performance industry financial performance of performance generated an respectively, for every passenger recent years. Available freight tonne above cost of capital return for they carried. 12 12 10 kilometers (AFTK), meanwhile, grew the fourth consecutive year Chart 14 11 Cost of capital (WACC) % of invested capital Return on capital (ROIC) % of invested capital 11 9.1 4.5% year on year, easily outpacing The global airline industry 10 10 8 the 3.4% growth in FTK. The freight experienced another year of robust 9 9 6.2 Operating margin (% of revenue) 5.8 load factor, therefore, fell about 1 financial outcomes in 2018. IATA 8 8 6 percentage point in 2018, partly estimates that airlines generated a 7 7 4.5 unwinding 2017’s gain. net posttax profit of $30 billion on 6 6 4 5 5 2.7 Chart 9 an operating (EBIT) margin of 5.8%. 4 4 2 1.5 These outcomes are modestly lower 3 3 than for 2017 and, as such, reflect 2 2 0 Oil prices had a bumpy ride 2018’s more challenging business 1 1 The jet fuel price opened the year environment and particularly its rising 0 0 -2 -2.0 under review about $80 a barrel and cost pressures. 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 20 8 20 9 20 0 20 1 20 2 20 3 20 4 20 5 20 6 20 7 18 was initially stable. At the end of 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 ry a pe c st a a 20 ic ic ric ifi Ea st ro er er ac Af du Eu e Am Am -P the year’s first quarter, though, the Despite a moderation in industry- dl In ia id rth tin As M La fuel price began to track upward, wide returns, to 8.0%, the air No increasing more than 20%, to peak transport’s return on capital 14. Airline profitability per passenger at $96 per barrel in October 2018. In exceeded its average cost of capital, 16 14.66 November and December, however, which increased to 7.3%, for the 14 market sentiment turned sharply down fourth consecutive year. Creating Net post-tax profit per passenger ($) 12 amid signs of a deteriorating global value for investors on a more economy and strong supply from US sustainable basis than the industry 10 8.20 tight oil producers. The price quickly has managed to do historically will 8 6.85 IATA Annual Review 2019 IATA Annual Review 2019 tumbled, falling more than 25% to be an increasingly crucial element in 6 4.74 end the year averaging about $72 in attracting the capital necessary to 4 2.77 fund fleet renewal and replacement in 2 the years ahead. Chart 12 0 -2 -1.09 -1.65 ry a pe c st a a ic ric ic ifi Ea st ro er er ac Af du Eu e Am Am -P dl In ia id rth tin As M La No
Safety Safety 02 Safety Continuously working to improve safety O 16 17 ver the past decade, the Developments in 2018 industry has witnessed In 2018, there were 11 fatal accidents a 54% improvement in that resulted in 523 fatalities among its all-accident rate and passengers and crew. This contrasts a 78% improvement in its jet hull with an average of 8.8 fatal accidents loss accident rate. The trend for and approximately 234 fatalities per the “business of freedom” is clearly year in the previous five-year period, toward fewer and less-lethal airline from 2013 to 2017, and with 2017’s accidents. Fluctuations, though, do record-low 6 fatal accidents and occur from year to year. 19 passenger and crew fatalities. Notwithstanding 2018’s higher This was the case for 2018, when 4.4 numbers, the year’s performance still billion passengers flew safely on 46.1 means that on average a passenger The aviation million flights. The jet and turboprop hull loss rates, the all-accident rate, could take a flight every day for 16,581 years before experiencing industry is and the fatality risk all improved a fatal accident in which all on determined to compared with their performances board perish. over the preceding five years. The improve on its industry, however, did not match its extraordinary performance of 2017, The all-accident rate (measured in accidents per 1 million flights) in safety record each its safest-ever year, during which 2018 was 1.35, the equivalent of 1 successive year. there were 6 fatal accidents and 19 accident for every 740,000 flights. fatalities, none of which occurred in This was an improvement over passenger jet operations. the all-accident rate of 1.79, or 1 accident for every 559,000 flights, in Every accident, of course, is a the 2013–2017 period, but a decline tragedy. And that makes the aviation compared with 2017’s record-low IATA Annual Review 2019 industry all the more determined to all-accident rate of 1.11. improve on its safety record each successive year.
Safety Safety The same pattern held for major accidents. The 2018 rate for major safety aside, everyone in air transport is shocked and challenged by the The regional story With the exception of Latin Industry and IATA activities in 2018 and early 2019 LOC-I, CFIT Lithium batteries in portable electronic devices jet accidents (measured in jet hull crashes of Boeing 737 MAX aircraft America and the Caribbean and the IATA’s safety work is guided by a six- Runway Safety To better understand the level of losses per 1 million flights) was 0.19, the equivalent of 1 major accident operated by Lion Air (29 October 2018) and Ethiopian Airlines (10 March Commonwealth of Independent States (CIS), every region globally point safety strategy. Safety audits remain a cornerstone of measuring and Midair passenger awareness regarding the safety risks of the lithium batteries for every 5.4 million flights. This was 2019). These two tragedies, occurring reported improvement in its 2018 performance and expanding best Collisions used in portable electronic devices an improvement over the rate for only four months apart under all-accident rate compared with the practice to more airlines. (PEDs), IATA surveyed passengers the previous five years, from 2013 what appear to be broadly similar rates for the preceding five years. in three major markets in 2018. to 2017, of 1 accident for every 3.4 circumstances, led to the global North Asia and Africa continued their Unmanned aircraft systems Passengers were queried on their 80% million flights but not as good as the grounding of this model of aircraft. excellent recent records of zero jet In 2018, there was an increase in the understanding of and compliance rate of 0.12 in 2017. hull losses. Europe and the Middle number of reported occurrences with airline requirements for the safe IATA respects the decision of East and North Africa (MENA) also of small drone aircraft—so-called handling of lithium battery powered Another way to look at aviation’s regulatory authorities globally to had zero hull losses in 2018. unmanned aircraft systems, or UAS— devices on aircraft. 2018 safety performance is to ask, ground the 737 MAX. And though operating irresponsibly near airports what would have happened if the IATA has no role in the process, it Turboprop operations still present and aircraft. The most significant The majority of travelers felt that industry had performed at 2013 looks to the aircraft manufacturer a challenge. But it is important to events took place at London’s they were well-informed about the levels? The answer is that it would to cooperate with the US Federal note that turboprop operations in all Gatwick and Heathrow Airports regulations. However, approximately have experienced 109 accidents in 2018, rather than 62, with 38 hull Aviation Administration (FAA) and other safety regulators in developing regions except MENA saw improved performances compared with the before the Christmas holidays in 2018. The UAS sighting at Gatwick 10% one-third of travelers surveyed, particularly business travelers, were losses, instead of the 12 that did a safe and robust solution that previous five years—and the spike in Airport resulted in the cancellation of still packing spare batteries and power occur, simply based on the greater addresses all identified concerns. the MENA rate was the result of only 1,000 flights. In 2018, loss of banks in checked luggage despite the number of flights operated in 2018. The industry’s solid progress in At the same time, there is no substitute for thorough and timely one accident. Turboprops, however, flew just 18% of the sectors in 2018 IATA supports the investigation of control–inflight safety prohibitions. In response, IATA launched a campaign to help airlines investigations of both accidents. and yet accounted for 45%, or 5 of 11, such incidents and the development (LOC-I) and communicate to passengers the right Safety is a top priority in aviation, of the fatal accidents globally. of measures to safeguard against controlled flight and wrong way to pack PEDs before and what is learned from every unlawful interference by UAS, they arrive at the airport. accident investigation is vital to the Detailed information on the industry’s such as the infringement of into terrain (CFIT) 18 efforts to further safety. safety performance can be found in restricted or sensitive airspace accidents accounted IATA Operational Safety Audit 19 the IATA 2018 Safety Report. in the area surrounding airports. The IATA Operational Safety Audit Any measures should support for more than (IOSA) is a global standard for aviation continuous monitoring and should 80% of fatalities, safety. IOSA is mandatory for IATA only be implemented following a risk membership, but fully 34% of the assessment. even though they airlines on the IOSA registry are non- Jet hull loss rates by region of operator (per million departures) represented IATA members who appreciate the In 2018, IATA issued a technical value of IOSA. less than 10% of ) IS bulletin highlighting key (C 2018 the accidents. ta f tS ho s considerations for implementing At the end of 2018, moreover, 14 te en alt 2013–2017 nd we technology. IATA is involved, authorities worldwide recognized pe on de m meanwhile, in discussions within IOSA as the complement to the In om ICAO panels on runway incursions national safety oversight programs C 1.19 by, and the irresponsible use of, UAS near airports. of 63 countries. European Union (EU) regulations, for instance, accept IOSA 1.00 as a means of safety compliance In 2019, IATA is intensifying its focus in the Third Country Operator 0.00 0.00 on raising safety awareness among authorization process. a nd 0.10 0.14 0.00 ric t a UAS users, specifically regarding the Af as There were 15 th E 0.22 or dle irresponsible use of UAS in proximity runway excursions, id pe M to airports and aircraft. IATA will also ia ro As N Eu 0.00 expand its work on UAS integration two of which th a 52 ic or er N into airspace in collaboration with 0.72 Am UAS industry innovators. were fatal, with th or N 0.32 0.00 0.37 0.19 0.76 1.06 IATA Annual Review 2019 IATA Annual Review 2019 0.29 0.51 c ifi a c ic Pa r Af a- fatalities i ry As be d st ib an du an ar a In C ic e er th Am tin La
4,776 Safety Safety ISAGO audits vs findings (As of December 2018) Ultimately, IATA’s Turbulence Aware All GADM data contributors have International Airline Audits Findings platform will provide an open solution access to aggregated and de- Training Fund that enables any operator to share identified reports and analyses, In 2018, the International Airline its data through a global turbulence including Training Fund (IATF) contributed data repository. Every participating to developing the skills and carrier will have access to every industry accident and incident data strengthening the capabilities of other carrier’s real-time turbulence and analysis and operational reports 3,435 aviation industry professionals data, and greater preflight and (pilot and flight attendant reports) in from developing nations. Of the 160 in-flight situational awareness will the Safety Trends Evaluation Analysis training events delivered by the IATF be achieved. Additional benefits & Data Exchange System (STEADES); during the year, 110 emphasized will include a decline in turbulence- aircraft ground damage reports aviation safety, particularly in Africa. 983 911 903 related injuries and improved and analyses in the Ground Damage 774 operational efficiencies, including Database (GDDB); In addition, under the auspices of 253 252 215 245 reduced fuel burn, through more de-identified flight information the IATF, five new airlines benefited 221 accurate flight planning. from over four million flights in the from the IOSA Implementation Flight Data eXchange (FDX) and, Training Initiative (IOSA-ITI). IOSA- Global Aviation Data with the imminent introduction ITI beneficiary Congo Airways, Management of the Incident Data Exchange moreover, was admitted to the IOSA 2014 2015 2016 2017 2018 Because the number of accidents (IDX), enhanced data analytics and registry and became an IATA member. is in decline, techniques to improve benchmarking capabilities with New programs launched by the IATF aviation safety are increasingly aggregated, de-identified global in 2018 support IOSA is not a guarantee against an IATA Safety Audit for Auditors record their findings in shifting to data-driven analyses of safety information. accident. Its efficacy is, however, Ground Operations a new style that results in a more trends and of the interaction between IOSA renewals by African carriers, evident when comparing aggregate The first audits in accordance with informative audit report than in the the links in the air transport chain. The In addition, IATA has been working carriers preparing for the IATA safety performance levels. In 2018, the new IATA Safety Audit for Ground past. And those reports are then goal is to expose potential risks and with more than 100 aviation safety Standard Safety Assessment, the all-accident rate for airlines on Operations (ISAGO) model occurred made available to airlines, which determine risk mitigation strategies. professionals on the IATA Safety network development in Africa, and the IOSA registry was more than in 2018. The new model introduced a use the information to complement Incident Taxonomy (ISIT). ISIT will developing the leadership potential 20 two times lower than that of non- number of significant changes: their oversight obligations and risk This is the focus of IATA’s Global support the IDX and provide the of women in African aviation. 21 IOSA airlines, at 0.98 versus 2.16, management of outsourced ground Aviation Data Management (GADM) ability to better identify global safety and more than two and a half times Moving to a corps of independent, operations. program. GADM is one of the risks to a more granular degree than better over the five years from 2014 professionally trained and certified world’s most diverse aviation safety previously possible. to 2018. auditors and away from a pool of Turbulence information exchange programs. voluntary auditors Turbulence is a well-known safety It captures data from more than The IOSA program is undergoing a Restructuring the cost model to hazard; passenger and cabin crew 470 industry participants, through digital transformation that will enable ensure a more even distribution of injuries related to in-flight turbulence accident and incident reports, ground IOSA-registered airlines to monitor program expenses between ground are climbing. So, in 2018, IATA damage occurrences, and flight each other’s safety performance and service providers (GSP) and airlines addressed this safety hazard with data. The result is a comprehensive, to benchmark their performance on Applying a new auditing the introduction of Turbulence cross-database analysis in support a collaboration platform. In the long methodology focused on standards Aware, a global platform for sharing of a proactive, data-driven approach run, the digital transformation will implementation and the alignment automatically generated turbulence to advanced trend analysis and also help to focus auditing on areas of the ground operations processes reports in real time. A number of predictive risk mitigation. with the highest safety risks. between a GSP’s headquarters and airlines are conducting trials of its network of ground operations Turbulence Aware in 2019, and IATA plans to launch the platform Some 245 audits of GSP were globally in 2020. conducted by independent auditors trained and qualified by IATA as IATA Turbulence Aware consolidates, members of the IATA Charter of standardizes, and accesses in real Professional Auditors. Stakeholder time objective turbulence data IATA’s Turbulence Aware feedback confirmed that the new collected from multiple airlines platform will provide approach produced a higher-quality worldwide. The platform’s purpose and more-thorough assessment of is to grant airline pilots and airline an open solution to the industry a GSP’s management, oversight, operational center personnel a that enables any operator to and provision of ground services. detailed, real-time awareness of The independent auditors raised an turbulence. This IATA initiative is share its data through a global turbulence data repository. IATA Annual Review 2019 IATA Annual Review 2019 average of about 20 findings per audit leading the air transport industry’s (see chart above). shift to data-driven turbulence mitigation.
Security Security S ecurity is a government Global Aviation and Security Plan The 40th ICAO Assembly in Progress in security is welcome. responsibility. But it is the Global aviation security efforts took an 2019 provides an opportunity Happily, 2018 saw the increased partnering of government enormous step forward in November to emphasize the importance implementation of One-Stop Security. and the industry that ensures 2017 when a majority of national of bringing governments and An agreement between Singapore that air transport is not only the governments agreed to GASeP under the industry together on the and the European Union, for instance, safest and most secure but also an the auspices of ICAO. GASeP identifies sharing of information regarding helps passengers avoid a redundant accessible and convenient form of five priorities: threats, vulnerabilities, and risks. check when they transfer flights at long-distance travel. In parallel, IATA is working with European airports that have elected Enhance risk awareness and ICAO and countries in a further to take advantage of the One-Stop Even greater collaboration is needed, response attempt at developing an online Security program. however, if the “business of freedom” is Develop security culture and human security application that facilitates to thrive. This will enable risk-mitigation capability the exchange of critical security Technology makes the case for One- measures that maximize the protection Improve technological resources and occurrence data. This sophisticated, Stop Security especially compelling. of passengers and crew while foster innovation highly secure tool will provide IATA is working with the World Travel minimizing disruption to passengers Improve oversight and quality the early detection of changes to and Tourism Council on decentralized and economies. assurance security environments in different digital identity platforms using Increase cooperation and support parts of the world. That, in turn, will biometric and blockchain Aviation security policy cannot rely enable the industry to deal with technologies. These technologies will on a one-size-fits-all approach. The Owing to GASeP, nations have—for the emerging threats and the impact of make identity verification possible at industry must learn from evolving first time—a framework for aligning changes on security procedures. all touch points along a passenger’s threats and anticipate the impact of national aviation security efforts to journey. The partners believe that this the fast-growing levels of passenger address and mitigate threats. In a The plan is to make this online will make security more efficient and and cargo traffic. IATA supports global short period, GASeP has been the security application available to all travel more convenient (see One ID standards, but an outcome-based catalyst for a wave of improvements in IATA members and registered IATA page 46). approach is essential, as every location aviation security. Operational Safety Audit (IOSA) has a unique mix of challenges. carriers by late 2019. So doing Cybersecurity Many nations, however, have not fully will enhance their collaborative The aviation industry demands 22 Developments in 2018 implemented the ICAO Annex 17 relationships with governments on the highest safety standards and 23 In 2018, aviation security continued baseline requirements that underlie threat and vulnerability information, precautions for aircraft systems. to stay ahead of evolving threats. As GASeP. IATA will support a resolution and that will help all aviation Modern aircraft are interconnected. UN Security Council Resolution 2309 at the 40th ICAO Assembly in 2019 stakeholders—public and private— Discrepancies; errors; or, worse, makes clear, governments have the that underscores the responsibility prevent, detect, and respond to nefarious threats, such as a computer primary responsibility for aviation of countries to meet global threats in a timely and effective virus or malware, can travel from security. But a secure industry can standards in their national manner. system to system by way of basic best be achieved when governments aviation security programs. electronic communication. As 03 and the industry work together as Sustainable risk-based the computerization and digital equal partners. Governments have There is, moreover, an urgent need for solutions footprint of aircraft increase, there access to information that drives developed countries to provide more The investment in aviation security is an even-greater need to protect security measures. Airlines and comprehensive assistance to their since 9/11 has without doubt made communication, data, and other Security airports have the operational know- how to ensure that these measures can be implemented to achieve the developing counterparts to ensure that the baseline security measures are applied. Provided the principles aviation more secure. Efficiency, though, has suffered. In IATA’s Global Passenger Survey, passengers critical information against intentional manipulations. Establishing twin goals of increased security and of GASeP continue to resonate with consistently point to airport security IATA is working alongside airlines, minimal disruption. stakeholders, the industry will move and border control as the worst part industry stakeholders, and other ahead of the threat trajectory. of traveling. Their biggest frustrations sectors to do just that. On behalf of This was the lesson that was relearned are having to remove personal items, these partners, IATA will deliver a a risk-based, in 2017 when, with little advance Information sharing such as laptops and PEDs, from cabin strategy in early 2020 that will provide notice or input from industry, the Information sharing among bags and the lack of consistency in guidelines for a comprehensive United States and the United Kingdom governments and particularly between screening procedures at airports. approach to cybersecurity for banned the carriage of large portable governments and the air transport the air transport industry. outcome- electronic devices (PEDs) in aircraft industry remains a challenge. cabins on some flights originating There has been some improvement in the Middle East. Passengers were since the shooting down of MH 17 focused confused, and airlines struggled to exposed gaps in the sharing of threat comply. A subsequent threat from information. But many airlines still IATA Annual Review 2019 IATA Annual Review 2019 weaponized powders witnessed a far are forced to rely on commercially smoother introduction of measures. sourced intelligence. The information- The investment approach Dialogue and collaboration among sharing standard in Annex 17 is a all stakeholders ensured that these step in the right direction. Yet it falls in aviation security since measures aligned with the Global short of the degree of multilateral Aviation Security Plan (GASeP). risk information sharing required for 9/11 has without doubt genuinely secure air travel. made aviation more secure
Regulation and taxation Regulation and taxation 04 Regulation and taxation Encouraging the Numerous actions were undertaken in 2018. Industry advocacy right framework dissuaded the government of Mexico from applying domestic aviation consumer laws to international carriers. Malaysia was induced to abandon a proposal to cap ticket fares. And further regulations were A opposed in South Africa; in the Arab ir transport cannot Specific regulatory improvements Civil Aviation Commission (ACAC) generate global prosperity were wide ranging. They spanned the region of the Middle East;, and, as and thereby fulfill its role as reduction of administrative burdens a result of the FAA Reauthorization the "business of freedom" through better European Union (EU) Bill, in the United States. In all such without an efficient and enabling agency collaboration in EU countries, cases, IATA partnered with local regulatory system and, specifically, the adoption of global standards industry and stakeholders to lobby fair and reasonable taxation. for electronic communications for smarter regulation principles to Regulation should be developed and in Brazil, and the introduction of be used to inform decision-making. It implemented using smart principles, globally harmonized ground-handling is particularly vital that governments, and excessive or poorly targeted regulations in India. regulators, and the flying public taxation should be avoided. understand the balance between 24 IATA’s launch of a regulatory protecting consumer rights and 25 IATA’s smarter regulations deliver competitiveness benchmarking providing sustainable air services. clearly defined, measurable policy toolkit will help to rank the objectives in the least burdensome “smartness” of nations’ approaches Aviation’s growth way. A policy framework based to regulation across a number IATA’s 20 Year Passenger Forecast on smarter regulation principles of policy areas. This will, in turn, predicts a doubling of passenger positions a country for sustainable inform industry priorities in 2019 demand over the next two decades. aviation growth. and beyond (see "Regulatory Harder to predict are the challenges Competitiveness Benchmarking" of that growth and of the then Developments in 2018 next page). global political environment. IATA, Throughout 2018, the industry therefore, produced its Future of engaged in coordinated advocacy Consumer protection the Airline Industry 2035 report to that resulted in adherence to Airlines have always worked hard to assist airlines and policy makers smarter regulation principles in retain customers in an ultracompetitive with strategy development. The several countries. The Malaysian marketplace. In an age of social media report has been used by a number Aviation Commission introduced an and citizen journalism, any incidents of carriers and governments (New airports quality service framework where standards of customer care Zealand's, for example) in framing that ensures more transparent and are perceived to fall short can rapidly policy and strategy. objective policy setting and airline go viral. Airlines, therefore, are highly involvement in decision-making. And incentivized to offer good customer Brexit in Brazil, the government introduced service and, if problems occur, to try Throughout 2018, the industry guidelines for regulatory quality. to put them right. warned the UK government and EU ICAO, meanwhile, agreed to work authorities of the implications for air with IATA on implementing good Airlines have agreed to core transport of a “no-deal” exit of the regulatory practices worldwide under principles for passenger rights. UK from the European Union. The the auspices of its "No Country Left When the circumstances of a flight concern was that failure of the British Behind" initiative. delay or cancellation are within an parliament to accept an interim Brexit airline’s control, airlines agree that agreement would result in cancelled IATA Annual Review 2019 IATA Annual Review 2019 passengers have the right to care flights and chaos for the industry and and assistance in the case of delays passengers. and rerouting and to refunds or other monetary compensation in the case of cancellations.
You can also read