Airlines to post record $40b profit in 2016: IATA

Global airlines are expected to post record profits of almost $40 billion this year, the head of industry body IATA said Thursday, but he warned the sector faced threats from terrorism, a sharp rise in oil prices and protectionism.

Alexandre de Juniac, who took the reins at the International Air Transport Association on September 1, also called on Southeast Asian nations to invest in infrastructure to cope with surging demand for air travel in the fast-growing region.

The former Air France-KLM chief executive told the group's symposium in Singapore that collective net profit for the airline industry worldwide would hit $39.4 billion, up from $35.3 billion in 2015.

Speaking at his first international keynote address since taking over from Tony Tyler, de Juniac said carriers had benefited from a sharp fall in the price of oil -- fuel costs are their biggest single expense -- and a resilient travel market despite slow global economic growth.