Profit squeeze continues into 1Q2011: IATA

IATA released (05-May-2011) its Apr-2011 airlines financial health monitor which revealed the following updated airline financial highlights for the three months ended 31-Mar-2011, based on a sample of 13 airlines:

• Operating profit (loss): USD760 million, +7.3% year-on-year;
  • North America: USD280 million, -2.4%;
  • Asia Pacific: ISD485 million, +34.7%;
  • Europe: (USD158 million), compared with a loss of USD81 million in p-c-p;
  • Latin America: USD153 million, +7.0%;
• Net profit (loss): (USD249 million), compared with a profit of USD37 million in p-c-p;
  • North America: (USD511 million), compared with a loss of USD355 million in p-c-p;
  • Asia Pacific: USD270 million, -27.2%;
  • Europe: (USD106 million), compared with a loss of USD68 million in p-c-p;
  • Latin America: USD98 million, +11.4%. [more]

IATA: "The profit squeeze began in Q4 last year when the improvement compared to the same quarter a year earlier slowed to USD3 billion. There had been a USD9 billion improvement in Q3. Early results for the first quarter of this year suggest that 2010 improvement has shifted to deterioration. The first quarter is always weak for seasonal reasons but the USD0.2 billion net post-tax loss, reported so far, is weaker than the small profit of last year," IATA statement. Source: IATA, 05-May-2011.