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22-Sep-2010 4:49 AM

IATA ups 2010 outlook for airlines; 2011 results to be weaker

Analysis

IATA again upwardly revised its 2010 outlook following a strong first half to the year, with the organisation now projecting a profit of USD8.9 billion - up from the USD2.5 billion profit forecast in Jun-2010 and a USD2.8 billion loss forecast as of Mar-2010 - on revenues of USD560 billion, commenting that the "industry recovery has been stronger and faster than anyone predicted". However, IATA warned that profitability for 2011 will drop to USD5.3 billion (with a 0.9% margin), stating 2010 is "as good as it gets for this cycle".

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