Geneva: Airlines are growing more confident as economic recovery takes hold, with financial performance at pre-crisis levels and expectations of future profitability rising, airline association IATA said on Tuesday.
Almost 70% of respondents reported making money during the last quarter and a similar proportion expect further improvement over the year ahead, IATA’s quarterly business confidence survey for July showed.
In the last survey in April, 57% of respondents reported profitability over the previous quarter and two thirds forecast a further improvement.
IATA, whose 230 members include Lufthansa, Gulf and Singapore Airlines, in June revised its own forecast for 2010 industry financial performance to a profit of $2.5 billion from a loss of $2.8 billion.
The sharp improvement in cargo and passenger demand seen in early 2010 continued in the second quarter, IATA said.
More than 80% of respondents reported rise in passenger demand, with similar rise for cargo.
But just over a quarter of respondents now indicate that cargo traffic growth may moderate over the coming 12 months, suggesting that the restocking phase of the recovery is coming to a close, it said.