Global airlines recovering faster than anticipated
The International Air Transport Association (IATA) has today revised its forecasts for the airline industry and said the recovery had been “stronger and faster than anyone predicted”.
According to the industry body, global airlines will make profits of $8.9 billion (£5.7 billion) in 2010.
The figure is a sharp upward revision from the one it made in June when it forecast a profit of $2.5 billion, while in March, it anticipated a loss of $2.8 billion.
IATA has previously described 2009 as “ the worst year the industry has ever seen.”
However, increasing demand and stable costs are fuelling the recovery, it said.
Commenting, IATA chief executive Giovanni Bisignani said: “The $8.9bn profit that we are projecting will start to recoup the nearly $50bn lost over the previous decade. But a reality check is in order.
“There are lingering doubts about how long this cyclical upturn will last,” he added.
However, Europe is lagging behind and this area is expected to make a loss in 2010.
The body is predicting a loss of $1.3 billion, but this is an improvement on its June forecast of a loss of $2.8 billion.
European airlines suffered much disruption earlier this year, due to the volcanic ash cloud from Iceland which led to flights being cancelled.