IATA: airlines rebounding strongly, still mired in red

Airlines are recovering strongly from the financial crisis, as passengers, freight and pricing power return, the airline industry association IATA said Thursday, halving its forecast for a 2010 loss.

With capacity for both passengers and cargo hitting record levels at the end of last year, all indicators are moving in the right direction, and the recovery is much better than expected, IATA Director-General Giovanni Bisignani said.

The recovery – still leaving the industry deeply in the red – is good news for both the industry and the global economy as a whole, indicating that exports are reviving, he said.

IATA estimates that 30 percent of world trade by value is moved by air freight.
"We are moving in the right direction. The recovery is strong. But we are still at pre-crisis levels," Bisignani said at a news conference.

IATA said airlines would lose $2.8 billion this year, half the $5.6 billion loss it forecast in December.

IATA said airlines are now halfway to recovery, with revenues forecast at $522 billion this year – $42 billion below their 2008 peak and $43 billion above the 2009 trough.
But it will take airlines 2-3 years to make up the losses from the crisis, Bisignani said.

Performance varies strongly across regions, with Asia and Latin America driving the recovery, but North Atlantic and European markets remaining weak, IATA said.

Source: Global Times