Asia Pacific airlines profits hit hardest by weak cargo in 2Q2011: IATA

IATA released (05-Oct-2011) its Sep-2011 Airlines Financial Health Monitor, which updates the following financial highlights for the global airline industry in 2Q2011:

• Operating profit: USD3941 million, -43.3% year-on-year;
  • North America: USD1937 million, -37.8%;
  • Asia Pacific: USD507 million, -84.4%;
  • Europe: USD1278 million, +262%;
  • Latin America: USD145 million, -7.1%;
  • Middle East: USD74 million, -7.5%;
• Net profit (loss): USD2327 million, -37.3%;
  • North America: USD682 million, -46.0%;
  • Asia Pacific: USD648 million, -56.5%;
  • Europe: USD1118 million, +9.4%;
  • Latin America: (USD133 million), compared to a loss of USD104 million in p-c-p;
  • Middle East: USD13 million, -69.8%. [more]

IATA: "Airline profits declined in 2Q2011, with the exception of Europe, for the first time in eight quarters. With a larger sample of airlines now having reported, the picture is clearer. The largest decline, particularly at the EBIT level, has been for the Asia-Pacific airlines, hit hardest by cargo weakness. North American airlines have also seen a significant squeeze on margins. By contrast profits improved for European airlines. Good performance on passenger markets has helped. But also the comparison is with the depressed volcanic-ash-affected 2Q2010," IATA statement. Source: IATA, 05-Oct-2011.