IATA forecasts ?10 airline industry profit

IATA forecasts Æ10 airline industry profit       The global aviation industry has returned to profitability, including North American carriers, which are forecast to collectively make $1.9 billion 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 $2.5 billion for the year. That's a huge swing from the $2.8 billion loss IATA projected only three months ago.
      Headlining the expected profit for the industry are Asia-Pacific carriers, who are now projected to make $2.2 billion in 2010. Pulling down the global forecast are European carriers, projected to lose $2.8 billion 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 $522 billion in March to $545 billion in June.
      That has led IATA to project an 0.5 percent profit margin for the industry for 2010.

Bisignani

      'Seeing black on the bottom line is a great achievement,' said Giovanni Bisignani, IATA's director general and chief executive officer. 'The resilience of the industry has been strengthened by a decade of cost cutting, restructuring and reengineering processes.
      'But even with all of our hard work, the result is just a 0.5 percent margin that does not even cover our cost of capital. The industry is fragile. The challenge to build a healthy industry requires even greater alignment of governments, labor and industry partners. They must all understand that this industry needs to continue to reduce costs, gain efficiencies and be able to restructure itself if it is to be sustainably profitable. We must all be prepared for a greater change.'