The International Air Transport Association (IATA) has stated airlines will generate a record high $15.1bn (£9.5bn) profit this year 70 percent more than its last estimate made just 3 months ago. In Sept. it said the overall airline profit for year 2010 will be $8.9bn. The body says the modification in estimate is right down to higher-than-anticipated traveller numbers.
But it says that regardless this income is "wretched" and that the business remains on a "knife edge". IATA’s director general, Giovanni Bisignani, said though the shift in the estimate appeared theatrical it was crucial to narrate it towards the size of the industry, which is likely to turn over $565bn in revenues. The alterations in the profit forecast represent just more than 1% of that revenue figure.
Profit in 2010 is forecast to be 2.7%. "The fact that we can boost our profit forecast by 70% but still remain with a net margin of just 2.7% shows just how far this industry has to go to accomplish a normal degree of profitability," said Mr. Bisignani.
Most of the growth can come from Asia, where economic growth is far greater than in Europe and also the US. IATA represents 230 airlines covering 93% of scheduled international traffic.