IATA sees Asia Pacific leading upswing with 12pc air cargo growth

THE International Air Transport Association (IATA) has revised its 2010 loss estimate for the airline industry, stating that carriers would now lose US$2.8 billion, rather than the $5.6 billion forecast previously, due in part to an estimated 12 per cent increase in 2010 cargo shipments, up from seven per cent earlier.

IATA attributed the improved figures to the better-than-expected recovery in the Latin American and Asia-Pacific markets, the latter of which, IATA said, would also benefit from an additional 12 per cent increase in demand due to capacity shortages.

The strong demand in the first quarter is an extension of the improvements witnessed in the latter part of 2009, for which the industry body also revised its year-end estimates to a loss of $9.4 billion, down from a deficit of $11 billion, according to the UK's Transport Intelligence.

Commenting on the differences in profitability between Latin American and Asian carriers relative to the rest of the world, IATA chief Giovanni Bisignani said that, unlike pharmaceuticals or telecoms, airlines had not been allowed to operate as global businesses. Battling the financial crisis without the ability to quickly reallocate assets to more profitable markets, he indicated, remained a key obstacle.

(Source: www.schednet.com)