International Air Transport Association Responsible Person: Airlines are benefiting from the fall in oil prices

The head of the International Air Transport Association stated that the global aviation industry is benefiting from the drop in oil prices, as the cost of jet fuel is also decreasing. IATA Director General Willie Walsh said that the decline in oil prices is helping to drive down ticket prices. "Jet fuel is usually our largest single cost, so if we see demand slowing down, the drop in oil prices will help offset any softening in demand," Walsh said in an interview with Bloomberg TV during the IATA annual conference in New Delhi. "It also tends to have an impact on pricing. There is almost a direct correlation between oil prices and ticket prices." Due to global economic uncertainty caused by President Donald Trump's tariff policies, demand has been suppressed and airlines are becoming increasingly cautious about demand prospects. At the same time, the dim economic outlook has pushed down oil prices, providing cost advantages for airlines. Walsh stated that while lower ticket prices typically stimulate demand, this also "clearly reduces total industry revenue". In the coming days, global airline executives will meet in New Delhi to discuss the current state of the industry. Walsh is scheduled to announce his formal outlook on airline profitability and revenue on Monday.