The International Air Transport Association (IATA) has forecast that the world’s airlines will recover in 2013, generating profits of US$7.5 billion.
The aviation body also revised its global airline profit forecast for 2012, raising the expected income of the world’s carriers to US$4.1bn, from the US$3bn predicted in June. Both the revised 2012 figure and early 2013 prediction however, remain below the US$8.4bn profits generated in 2011, and margins remain thin, at just 0.6% this year and 1.1% next.
“The European sovereign debt crisis lingers on. China continues to moderate its growth. And the impact of recent quantitative easing in Japan and the US will take time to yield growth. While some of these risks have diminished slightly over recent months, they continue to take their toll on business confidence. The outlook improvement is due to airlines performing better in a difficult environment,” said Tony Tyler, IATA’s Director General & CEO.
IATA said its positive upgrade for 2012 followed improved second quarter results, with operating profits close to those of the previous year. The association noted that industry consolidation is “producing positive results”, with airlines able to keep load factors high despite softening demand.
IATA said its positive upgrade for 2012 followed improved second quarter results, with operating profits close to those of the previous year. The association noted that industry consolidation is “producing positive results”, with airlines able to keep load factors high despite softening demand.
Read More: Airline Profits to Rise in 2013
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