ABSTRACT
The second half of the 1980s was a good period for the airline industry. After the disastrous years of 1980-3, its fortunes improved. Despite a hiccup in 1986 associated with the Chernobyl nuclear disaster and terrorism in Europe, the years 1984-9 were among the most successful in the industry’s history. Yet, surprisingly, operating profits as a percentage of revenue were only about 4-6 per cent; and they dropped to only 1-2 per cent once interest and other non-operating items were included (Figure 1.4). Nevertheless, there had been a marked improvement compared with the early 1980s.
