IATA has forecast better profitability for the world’s airlines, revising its June 2012 prediction of US$3 billion to now US$4.1 billion for this year.
A cautious Tony Tyler, director-general and CEO of IATA, said while profitability looks to be improving, “we should not get too excited”, describing the expected 0.5 per cent profit margins as “anaemic”.
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2013 profit performance is expected to improve further, with US$7.5 billion forecast (equating to a 1.1 per cent margin), supported by expected lower oil prices, faster growth and upward GDP forecasts. The profit is still a long way off the US$19.2 billion in profits generated by IATA member airlines in 2010.
Tyler said joint ventures in longhaul markets were “starting to make a difference”, but there was “still a long way to go before ‘normal’ profits are earned”.
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