IATA continues to lift forecast for airline industry

| December 14, 2010 | 0 Comments
IATA continues to lift forecast for airline industry

The International Air Transport Association (IATA) has again revised its forecasts for the airline industry.

According to the industry body, global airlines will make a profit of $15.1 billion (£9.5 billion) this year.

The figure is 70% higher than its previous forecast made in September and significantly better than its anticipated loss of $2.8 billion in March.

Most of the growth will come from Asia, where economic growth is far higher than in Europe and the US, it said.

However, despite the lift in forecasts, the body said profits will dip next year with profits falling to $9.1 billion - this is primarily due to higher fuel prices and the euro zone debt crisis, which will hamper growth in industrialised markets.

IATA also said the spending cuts which are being implemented by many Governments throughout the world will hinder economic growth which will “make it a more challenging environment to grow revenues.”

Commenting, IATA chief executive Giovanni Bisignani said: “Although the $9.1 billion profit projection for 2011 is better than we had previously forecast, next year the industry will face tougher conditions than what we are experiencing today.”

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