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