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Aviation around the world has been through a transformative decade-and- a-half. The way we travel is being changed by technology, airlines’ financial performance is improving, and the air-transport industry has emerged as a leader in managing its climate-change impact.Let us take those one at a time, starting by thinking about how you travel today. You use an e-ticket, probably check in online and you may use a mobile boarding pass to navigate through the airport. All of that technology was introduced in the last decade. And it is built on innovative thinking and IATA’s global standards.Now we are modernizing how airlines sell their products through travel agents with global standards built for the internet age. It is a project called New Distribution Capability, or NDC. The name may sound bland, but it will progressively enable a richer and more transparent shopping experience. I am confident that it will unleash product innovations and options for travellers that will once again profoundly change how people travel.These innovations are not only making life better for travellers, they are also contributing to a great turnaround story in airline financial performance. Between 2011 and 2014 airlines were profitable even as the price of crude oil hovered around US$100/barrel. And in 2015 there was a great breakthrough. For the first time in history, airlines earned a profit in excess of the industry’s average cost of capital. In 2016 airlines collectively made a record profit of US$35.6 billion. It is still, however, an incredibly tough business. Total industry revenues were some U$701 billion. So, the global net profit margin was just 5.1 per cent. Put another way, on average, airlines made about US$9.43 per passenger. That is a lot less than what most governments take from passengers in taxes! We expect this year to be another strong year, although a little down on 2016 as a result of higher oil prices.Aviation continues to grow to meet the world’s thirst for travel. This year we expect passenger numbers to reach 4 billion and over 55 million tonnes of cargo will be delivered to markets around the world by air. By value, that accounts for just over a third of goods traded internationally. ALEXANDRE DE JUNIAC, DIRECTOR GENERAL AND CEO, THE INTERNATIONAL AIR TRANSPORT ASSOCIATION (IATA)CARBON NEUTRAL GROWTH FOR AVIATION200520100501002020203020402050CO2 indexed to equal 100 in 2005Carbon-neutral growthNo actionBiofuelsEconomic measures-50% by 2050Emissions reduction roadmapMore efficient aircraftFlying smarter110 AVIATION