A STABILISING global economy means the world’s airlines will make $2.2bn (£1.46bn) more in profits than previously thought, according to the International Air Trade Association (IATA).
The Geneva-based group, which represents four in five airlines, now expects the aviation industry to produce a net post-tax profit of $10.6bn this year, up from its earlier forecast of $8.4bn.
“Against a backdrop of improved optimism for global economic prospects, passenger demand has been strong and cargo markets are starting to grow again,” said IATA boss Tony Tyler.
The group also believes that the industry’s post-tax profit margin will rise 0.3 percentage points to 1.6 per cent this year.
Passenger numbers are set to expand 5.4 per cent this year. The rises are helped by a better outlook for global GDP, though this will be tempered by a rocky Eurozone economy.