IATA forecasts profits for airlines in 2010
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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Tags: airline industry, ash cloud, IATA, International Air Transport Association, profits, recovery, revised, traffic, turnaround, volcanic