IATA queries recovery

Airline earnings will shrink next year after peaking at US$8.9 billion in 2010, according to the International Air Transport Association.

Profits will probably decline to US$5.3 billion in 2011, IATA ceo Giovanni Bisignani said.

Margins still are "razor thin" and below previous peaks, he added.

"This year is as good as it gets in the cycle," Bisignani said.

"Governments are running out of cash, unemployment remains high and business confidence is weak.

"The real question is how long we see the recovery lasting."

IATA queries recovery

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Thursday, 23 September 2010

Airline earnings will shrink next year after peaking at US$8.9 billion in 2010, according to the International Air Transport Association.

Profits will probably decline to US$5.3 billion in 2011, IATA ceo Giovanni Bisignani said.

Margins still are "razor thin" and below previous peaks, he added.

"This year is as good as it gets in the cycle," Bisignani said.

"Governments are running out of cash, unemployment remains high and business confidence is weak.

"The real question is how long we see the recovery lasting."