Airlines Recovering – IATA

IN A COMPLETE change from its March prediction that the world’s airlines would make a $2.8 billion loss in 2010, the International Air Transport Association (IATA) now expects carriers to make a $2.5 billion profit.
IATA Director Giovanni Bisignani said that: “The global economy is recovering… much more quickly than could have been anticipated.  We thought that it would take at least three years to recover the $81 billion (14.3%) drop in revenues in 2009.  But the $62 billion top-line improvement this year puts us about 75% on the way to pre-crisis levels.”
However, the lion’s share of this improvement will be made by Asian carriers where growth is expected to reach 7% this year.  European airlines are still expected to make a substantial loss, though latest IATA estimates reduce this from $2.8 billion to $2.2 billion, partly due to the chaos caused by the volcanic ash disruption in April and May and partly due to slow growth.