The International Air Transport Association has said the airline industry should be profitable this year for the first time since 2007, led by strong growth in the Asia-Pacific region,
'We are upgrading our global industry forecast to a full year profit of $2.5 billion (€2.1 billion),' IATA director general Giovanni Bisignani told its annual general assembly in Berlin.
In March, IATA estimated its members would post a loss of about $2.8 billion this year, following a shortfall of $9.4 billion in 2009. Bisignani said that while the industry would be profitable, any profit would be 'modest'.
In 2007, before the global financial crisis broke, airlines posted combined profits of $12.9 billion.
The recovery will be uneven, the IATA head warned, saying Europe would be the only region to lose money, with a $2.8 billion loss. Last year, European airlines lost $4.3 billion.
For 2010, in addition to weak traffic in the winter months, Europe has had to contend with a volcanic ash cloud from Iceland that forced the cancellation of some 100,000 flights in April. The volcano cost the airlines some $1.8 billion in lost revenue, Bisignani said.
The IATA chief said he was positive on the industry for the longer-term, saying that he expected airlines to have almost no accidents by 2050 and to cut carbon dioxide emissions by half.
By then, the sector 'will be a consolidated industry of a dozen global brands supported by regional and niche players,' the IATA head said.
