Airlines will start to see a bump in profit thanks to dropping oil prices and improved economic growth, an industry group said Wednesday.
Profits could increase 26% to a record $25 billion in 2015, said the International Air Transport Association (IATA), which represents most global airlines. One primary factor in the upward trend is the failing price of oil. Airlines are major consumers in the fuel market.
IATA said profits won’t improve overnight since it takes time to change buying behavior, but flyers may eventually see a drop in airfares.
Other factors could still slow this growth. “The industry story is largely positive, but there are a number of risks in today’s global environment—political unrest, conflicts, and some weak regional economies- among them,” Tony Tyler, IATA’s Director General and CEO, said in a statement.
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