Giovanni Bisignani Return Quotations

We will only see profitability in 2007 when we expect a return of US$6.2 billion. This is a net profit margin of 1.5%, not even enough to cover the cost of capital and nowhere near recovering the billions lost since 2001. A long and difficult agenda for change involving all partners is still ahead of us.

Oil is once again robbing the industry of a return to profitability, ... Each dollar added to the price of a barrel adds $US1 billion in costs to the industry.

Oil remains the single-biggest challenge for airline profitability. Strong demand gives little hope of significantly reduced prices this year. What is disappointing is the response of the oil industry. Instead of expanding refinery capacity, the oil companies plan to return a quarter of a trillion dollars to investors over the next two years. Airlines alone have contributed $14 billion to this windfall profit. It is time that governments stepped in to encourage investment in new refinery capacity along with research into alternative fuel sources.

Oil is once again robbing the industry of a return to profitability. Cost reductions and efficiency gains have never been more critical.