Executive Briefings

Aviation Is Back in the Black, According to International Air Transport Association

The global aviation industry has returned to profitability, including North American carriers, which are forecast to collectively make $1.9bn in 2010, according to the International Air Transport Association.

IATA said it has revised upward its forecasts from March, with the global industry projected to make $2.5bn for the year. That's a huge swing from the $2.8bn loss IATA projected only three months ago.

Headlining the expected profit for the industry are Asia-Pacific carriers, who are now projected to make $2.2bn in 2010. Pulling down the global forecast are European carriers, projected to lose $2.8bn this year.

Cargo demand is expected to increase 18 percent (up from 12.5 percent projected in March) while total revenue for airlines has been revised upward marginally, from $522bn in March to $545bn in June.

That has led IATA to project an 0.5-percent profit margin for the industry for 2010.

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The global aviation industry has returned to profitability, including North American carriers, which are forecast to collectively make $1.9bn in 2010, according to the International Air Transport Association.

IATA said it has revised upward its forecasts from March, with the global industry projected to make $2.5bn for the year. That's a huge swing from the $2.8bn loss IATA projected only three months ago.

Headlining the expected profit for the industry are Asia-Pacific carriers, who are now projected to make $2.2bn in 2010. Pulling down the global forecast are European carriers, projected to lose $2.8bn this year.

Cargo demand is expected to increase 18 percent (up from 12.5 percent projected in March) while total revenue for airlines has been revised upward marginally, from $522bn in March to $545bn in June.

That has led IATA to project an 0.5-percent profit margin for the industry for 2010.

Read Full Article