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Airlines poised for US$12b windfall thanks to oil collapse

Profits in 2015 will swell 25 per cent to US$25 billion, according to Iata

Published Wed, Dec 17, 2014 · 09:50 PM

Dallas

AIRLINES around the world are poised for a US$12 billion windfall as the global oil crash cuts bills for jet fuel, the biggest expense in an industry that was battered by surging commodity prices last decade.

The savings promise to produce fatter profits and, in the US, rewards for shareholders through sweetened dividends or stock buybacks. Missing out so far are consumers, because many carriers are still filling seats without having to resort to discounts.

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