Airline body IATA increases its profit forecast as market lifts

AIRLINES will post higher profits than expected this year and next, according to the industry association IATA.

However, margins remain low and the sector’s recovery is patchy, with European airlines underperforming those in other regions, the International Air Transport Association (IATA) said in its latest financial forecast yesterday.

IATA said the increase is due to an upturn in the market, “exceptionally strong third-quarter performance” and better capacity usage. It therefore raised its profit forecast for this year from $8.9bn (£5.6bn) to $15.1bn and predicted profit next year of $9.1bn, up from an earlier forecast of $5.3bn.

The industry body represents 230 airlines covering 93 per cent of scheduled international traffic.