Observing that the recovery in the aviation sector has been “stronger and faster” than anyone predicted, the International Air Transport Association (IATA) has revised its 2010 industry outlook and has projected an annual profit of $8.9 billion (R40,673 crore), up from the $2.5 billion (R11,425 crore) forecast in June.
Giovanni Bisignani, IATA’s Director General and CEO, said Asia-Pacific carriers are expected to post a $5.2 billion profit. This is better than the $3 billion recorded during the previous peak in 2007 and double the previously forecasted $2.2 billion.
Demand in 2010 is expected to grow by 11% (stronger than the previous forecast of 10.2%) while capacity will only expand by 7.0% (up from the previous forecast of 5.4%).
Bisignani however cautioned about the sector’s operating margins remaining around the 1.6 per cent mark.