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Wednesday 09th of June 2010
June 7, 2010    

IATA forecasts profits for airlines in 2010

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by Kay Murchie

The International Air Transport Association (IATA) has revised its forecasts for the airline industry for this year after forecasting a loss in March.

According to the industry body, global airlines will make profits of $2.5 billion (£1.7 billion) in 2010.

In March, IATA forecast a loss of around $2.8 billion this year, following a severe fall of $9.4 billion in 2009 - which IATA described as “ the worst year the industry has ever seen.”

The revision comes despite the volcanic ash cloud from Iceland which led to flights being cancelled.

The volcano ash cost airlines $1.8 billion in sales, according to IATA director Giovanni Bisignani.

Last month, IATA said international passenger traffic fell in April as a result of the ash cloud.

Speaking at annual general assembly in Berlin, Mr Bisignani, said: “The global economy is recovering… much more quickly than could have been anticipated.”

He added: “We thought that it would take at least three years to recover the $81 billion (14.3%) drop in revenues in 2009.

“But the $62bn top-line improvement this year puts us about 75% on the way to pre-crisis levels,” he added.

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