IATA raises 2010 Profit Forecast

THE INTERNATIONAL Air Transport Association (IATA) has stated that the world’s airlines will earn a collective $15.1 billion net profit for the full-year 2010 – a 69.7% increase over its September forecast of $8.9 billion.  It also revised its 2011 forecast for the global industry and now forecasts a $9.1 billion net profit.
Giovanni Bisignani IATA’s CEO emphasised that 2010 earnings represent only a 2.7% positive margin on annual revenue of $565 billion, while the forecasted 2011 profit is expected to represent a 1.5% margin on projected $598 billion in revenue.
“Our margins are still pathetic,” he said at a Global Media Day in Geneva at the end of 2010.  “If airlines were a charity organisation, [2010 earnings] would be a good result.  As a business, it clearly shows that we remain a sick business.  We have not achieved sustained profitability.”