Tag Archives for " IATA "

Airlines – back to the old ‘normal’

Manipulating monetary conditions leads to bad investment decisions as we have seen with the airline industry. 18 months ago its principal trade body IATA was waxing lyrical about the industry, as were financial pundits. Unfortunately, they underestimated the impact that low funding costs would also have on margins and profits in a capital intensive industry […]

Continue reading

“Normal profits are becoming normal for airlines” – be afraid!

Recency bias is alive and well. “At long last, normal profits are becoming normal for airlines”, so says the IATA in its June 2018 industry update titled “Solid Profits Despite Rising Costs”.  After a couple of years of improving margins and ROIC, is this a paradigm shift for investors to jump aboard? Unfortunately, it feels […]

Continue reading