Reversing its earlier forecast that the global airline industry would lose money in 2010, the International Air Transport Association says the industry will post a $2.5 billion profit this year.
"The global economy is recovering from the depths of the financial crisis much more quickly than could have been anticipated," said IATA chief executive Giovanni Bisignani. "Airlines are benefiting from a strong traffic rebound that is pushing the industry into the black."
Previously, IATA said the industry would lose $2.8 billion.
In its new forecast, IATA says passenger traffic is expected to grow by 7.1 percent and cargo traffic will increase by 18.5 percent. Revenues are forecast to be $545 billion.
North American carriers are anticipated to post a profit of $1.9 billion as demand is growing and capacity cuts are implemented. European airlines, however, will post a $2.8 billion loss partly due to the volcanic ash crisis and a series of labor strikes.
The full release is here.
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