IATA Raises Profit Forecast for Airlines
SINGAPORE ( TheStreet) -- The International Air Transport Association projects 2010 profits for the airline industry will come in at $8.9 billion, higher than its June forecast of $2.5 billion, but said profitability will fall next year.
"The industry recovery has been stronger and faster than anyone predicted. The $8.9 billion profit that we are projecting will start to recoup the nearly $50 billion lost over the previous decade," said Giovanni Bisignani, IATA's director general and CEO, in a statement Tuesday. "But a reality check is in order. There are lingering doubts about how long this cyclical upturn will last,"
IATA predicts global airline profits will fall to $5.3 billion in 2011.
IATA said the improved outlook for 2010 is being driven by "increasing demand and disciplined capacity management" leading to stronger yields which push revenue higher. Costs, meanwhile, remain relatively stable.IATA said Asia is expected to lead growth in 2010 with a profit of $5.2 billion, while Europe will be the only region to lose money on "continuing economic weakness in the European economy and faltering consumer confidence" which depresses passenger traffic. -- Written by Joseph Woelfel
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV