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'Downturn in aviation will be no bad thing'

Air
Edward Robertson
7 October 2015

A predicted downturn for the global aviation industry will ultimately be good for it.

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Speaking at the Capa World Aviation Summit 2015 in Helsinki, Capa - Centre for Aviation chief financial analyst Jonathan Wober said overall global aviation margins are currently 5.9%.

This puts them right at the top end of a cycle that has not exceeded 6% in the last four to five decades, he added. It also represents growth on last year’s figure of 4.6%.

And he predicted the current levels are unsustainable, despite oil prices predicted by the WTO to fall further next year.

Wober said: “Cycles don’t stay at the top of the cycle, whether it drops next year or the year after, the next stage is a drop.”