The world's airlines are expected to post a profit of $US8.9 billion this year, an industry body has said, in a sharp upgrade of its previous forecast.
The International Air Transport Association (IATA) said the industry recovery had been "stronger and faster than anyone predicted". Only three months ago IATA predicted a profit of only $US2.5 billion. In March, the forecast was rather bleak with an expected loss of $US2.8 billion.
IATA said increasing demand and stable costs were driving the recovery.
The strongest region was the Asia-Pacific market in which Australia is located. Carriers in this region are expected to post a $US5.2 billion profit this year. The strong improvement is based on strong market growth and yield gains. Qantas, the largest Australian airline, advised in August 2010 a underling profit of $A377 million dollars for the 2009/10 financial year.
Full copy of the press release is available at http://www.iata.org/pressroom/pr/Pages/2010-09-21-02.aspx