Berlin (2010-06-08)

THE INTERNATIONAL Air Transport Association (IATA) expects airlines to post a global profit of US$2.5 billion, a turnaround from its March forecast of a US$2.8 billion loss.

The industry is projected to reap revenues of US$545 billion this year, up from US$483 billion in 2009.

Passenger traffic is forecast to grow 7.1 per cent in 2010, while new capacity from 1,340 aircraft scheduled for delivery this year is expected to support strong load factors.

Premium travel was rebounding at an annual growth rate of 20 per cent over the first quarter, with business travel supporting some of the recovery in the economy cabin.

However, IATA CEO, Giovanni Bisignani, warned that the expected profits will come with a net margin of just 0.5 per cent, and that “a major part of the global industry is still posting big losses”.

Further, Bisignani expects airlines to enjoy US$100 billion in industry profits on revenues of US$1 trillion in over a decade's time, and achieve a robust 10 per cent margin by 2050.

His vision for 2050 rests on “four cornerstones of change” - improving efficiencies for sustainable profitability, reshaping infrastructure around airlines' needs, developing sustainable alternative fuel, and gaining customer support in demanding an end to governments' “over-regulate and under-appreciate” attitude.