IATA: International airlines sector reported $4.4B profit
The International Air Transport Association (IATA) Monday reported a net profit of $4.4. billion for the international airlines sector and outlined a positive growth trajectory for the industry.
"With more airlines reporting second quarter results, the total is now up to US$4.4 billion, following US$1.9 billion losses in first quarter (Q1)," the industry body said in a statement.
According to it, the first and second quarter net profits were US$5 billion better than the previous year and it expects the third quarter would be the most profitable one for the industry.
It further said that it expected the industry to make a profit of $8.9 billion in 2010, compared to a loss of $9.9 billion loss in 2009.
IATA, which represents 230 airlines comprising 93 per cent of scheduled international air traffic, has revised its previous estimate. In June, IATA had said it was expecting $2.5 billion profit.
The improved outlook for 2010 is being driven by a combination of factors. On the revenue side increasing demand and disciplined capacity management are leading to sharply stronger yields pushing revenues higher. At the same time, costs remain relatively stable.