IATA raises profit outlook for 2013 to $8.4 billion
IATA has raised its profit outlook for the world’s airlines for 2013 by almost $1 billion to $8.4 billion in net post-tax profits, up from the association’s previous 2013 forecast of $7.5 billion. This is because of improving financial performances in the second and third quarters after sharp falls at the start of the year. Airline profits and cash flows are at the pre-recession levels of 2006-07, despite high oil prices and a slowing world economy.
“I think we are past the low point, which was earlier this year,” IATA’s chief economist Brian Pearce said.
Hard-minded cost-cutting among airline companies and “improved industry structure” have helped improve the outlook for 2013, IATA thinks. The association has also revised its 2012 profit forecast to $6.7 billion from its earlier prediction of $4.1 billion.
[pictured: View over Øresund; photo courtesy Copenhagen Airport]