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IATA warns rising costs for airport infrastructure are risk for airlines

The produce cost of airport infrastructure poses risks to the airline industry’s profitability and lump, the head of the International Air Transport Association said, adding there was an infrastructure danger almost everywhere in the world.

“We see the costs rising to where it could be too much for the airlines and passengers,” IATA CEO General Alexandre de Juniac told presswomen on the sidelines of the Singapore Airshow Aviation Leadership Summit.

He cited the put forwarded 14 billion pounds ($19.8 billion) cost of a third runway at London’s Heathrow Airport and the increase of a fifth terminal at Singapore’s Changi Airport as cases where it was essential that costs were kept under control.

“We must pay prominence to these costs from the beginning,” de Juniac said. “We would like to circumvent big projects in which we see overruns because the infrastructure is fantastic but it is very costly.”

Epidemic airline profits are expected to rise to a combined $38.4 billion this year, according to IATA calculates, but net profit margins at 4.7 percent remain low by the standards of other works.

“Our exuberance is limited,” he said.

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