Aviation consultancy IBA has questioned whether airline profitability may have peaked considering the current macroeconomic outlook. According to IBA, there are mixed signals at play – positive metrics including traffic growth, vibrant new markets, and a buoyant SLB market seem to indicate that strong net profitability will continue. However, with the gathering clouds of creeping fuel prices, rising interest rates, wage inflation and increasingly price sensitive passengers, a different picture begins to emerge. Mid-2018 fuel prices are $15 higher per barrel than IATA predicted, a 40% increase year on year. Base airfares and yields have generally stabilised since the sustained

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