IATA Lowers Airline Profit Projections To $4B

The International Air Transport Association (IATA) reported that it now projects member airlines to make a net profit of $4 billion this year, lower than its earlier March forecast of $8.6 billion. IATA also expects lower passenger and cargo demand.

Profits in Asia are expected to drop by 80% from last year's level. IATA raised its projections for 2011 global GDP growth to 3.2% from 3.1%. Passenger numbers are projected to grow by 4.4%, versus its March forecast of 5.6%. The outlook for cargo expansion has been lowered from 6.1% to 5.5%.

Global airline capacity is expected to rise 5.8% this year. Passenger yields are projected to improve 3% in 2011 versus last year.

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