Airlines' profit outlook raised

Airlines' profit outlook raised
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There was better news from the airline world as the International Air Transport Association nudged up its profit forecasts for this year.

That is based on growing confidence in the global economy, with rising passenger numbers and cargo traffic.

The association, which represents around 80 percent of global carriers, expects the industry to make a net profit of 8.2 billion euros this year, up from an earlier forecast of 6.5 billion and well above last year’s 5.9 billion.

“Against a backdrop of improved optimism for global economic prospects, passenger demand has been strong and cargo markets are starting to grow again,” said Tony Tyler, IATA’s director general and chief executive.

IATA cautioned that the eurozone risked a renewed crisis from the situation in Cyprus, and that its forecast was based on the eurozone remaining stable.

Passenger traffic is forecast to rise by 5.4 percent compared with an earlier forecast of 4.5 percent, while cargo activity – a sensitive barometer of world trade – is forecast rising 2.7 percent, compared with a forecast of 1.4 percent previously.

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