LCC shares fell in trading yesterday, as IATA lowered its airline industry profit outlook from USD9.1 billion to USD8.6 billion. Fuel costs are expected to increase 19.4% year-on-year and overall costs are expected to increase 9.7%. Asia Pacific carriers fell the heaviest, with AirAsia down 6.3%, Virgin Blue losing 5.6% and Skymark falling 4.8%.
Details of IATA’s revised profit forecast for 2011 are as follows:
- Revenue: USD594 million, +7.6% year-on-year;
- Operating profit: 18.4 million, -32.8%;
- Net profit: USD8.6 million, -46.3%;
- North America: USD3.2 billion, -31.9%;
- Europe: USD0.5 billion, -64.3%;
- Asia Pacific: USD3.7 billion, -51.3%;
- Middle East: USD0.7 million, -36.4%;
- Latin America: USD0.3 billion, -70%;
- Africa: Breakeven, compared with a profit of USD0.1 billion in p-c-p;
- Passenger numbers: 2570 million, +5.4%;
- Passenger yield: +1.5%;
Selected LCC daily share price movements (% change): 02-Mar-2011
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