IATA raises airline profit forecast to US$15 billion

IATA raises airline profit forecast to US$15 billion

IATA has made another major upward revision to its industry profit forecast for 2010, from US$8.9 billion to US$15.1 billion. Similarly, the association has revised its projection for 2011 to a net industry profit of US$9.1 billion, from the US$5.3 billion forecast in September. Passenger traffic growth of 8.9% is now expected for 2010, compared to 7.7 percent previously forecast, which will boost revenues to US$565 billion – an improvement of US$5 billion on the September prediction. “Our profit projections increased for both 2010 and 2011 based on an exceptionally strong third quarter performance,” said Giovanni Bisignani, IATA’s director general and CEO. “But despite higher profit projections, we still see the recovery pausing next year after a strong post-recession rebound. And the two-speed nature of the recovery is unchanged with European airlines continuing to underperform other regions.”

Gary Marshall
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Gary Marshall
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