IATA downgraded (02-Mar-2010) its profit forecast for the airline industry from its Dec-2010 forecast of USD9.1 billion to USD8.6 billion due to the rising cost of fuel. Fuel costs are expected to be 29% of total costs this year compared with 26% in 2010.
The outlook for Asia Pacific airline profits was cut by 50% to USD3.7 billion. IATA Director General and CEO, Giovanni Bisignani, stated that the industry is looking at Asia to "play a much bigger role in shaping a more profitable future".
Details of IATA’s revised profit forecast for 2011 are as follows:
- Revenue: USD594 million, +7.6% year-on-year;
- Costs: USD575 million, +9.7%;
- Fuel: USD166 million, +19.4%;
- Operating profit: 18.4 million, -32.8%;
- Net profit: USD8.6 million, -46.3%;
- Passenger numbers: 2570 million, +5.4%;
- Passenger yield: +1.5%;
- Cargo volume: 46.2 million tonnes, +6.0%;
- Cargo yield: +1.9%.
Selected APAD daily share price movements (% change): 02-Mar-2011