Regional financial performance was again mixed
Regionally, the industry’s financial performance remained considerably varied. The financial performance of the North American airlines continued to lead the way, delivering an operating (EBIT) margin of 9.1% in 2018. Airlines in Europe, Asia-Pacific, and Latin America also yielded solid profitability, while carriers in the Middle East and in Africa faced especially challenging operating environments.
On a per passenger basis, the airline industry is a high-volume, low-margin industry. Considering net profits on a per passenger basis highlights this and presents an alternative perspective on regional airline profitability. By this measure, the industry generated a modest $6.85 per passenger in 2018. Regionally, the North American carriers were the best performers, earning $14.66 per passenger. At the other end of the spectrum were airlines in Africa and Latin America. In aggregate, they averaged a loss of $1.09 and $1.65, respectively, for every passenger they carried.