Asia Pacific airlines likely to report first profit in three years: AAPA

AAPA Director General, Andrew Herdman, stated Asia Pacific airlines, which reported combined losses of USD11 billion in the past two years, will likely report the first region-wide profit in three years, as economic recovery drives traffic to pre-global financial crisis levels (Bloomberg, 08-Jul-2010). Mr Herdman added airlines in the region, including Singapore Airlines and Cathay Pacific, may also return to profitability faster than airlines in Europe and the US. Mr Herdman did not disclose full-year profit estimates. According to Mr Herdman, "airlines will continue to add capacity in the single-digits" as airlines in the region look to boost profits.

AAPA: "US carriers have been struggling with a very large, slow-growing market and on top of that, a downturn, the recovery in Europe is still anemic. Airlines will continue to add capacity in the single digits and they will be watching load factors and bottom line. There's still latent capacity in terms of under-utilised aircraft. On top of all this, you've got about 4 to 5 percent capacity increases from new aircraft coming in," Andrew Herdman, Director General. Source: Bloomberg, 08-Jul-2010.