The Global Aviation Industry Recovering Faster Than Expected
Tiffany PhillipsThere is finally some good news for the global aviation industry. Apparently recent reports show that the industry is recovering at a considerably faster rate than what was previously expected. This is mostly due to a very sharp recovery in passenger numbers and, of course, cargo.
Unfortunately, European airlines are missing out on this great recovery. The main reason behind this is due to the impact of April’s volcanic eruption in Iceland and industrial disputes like the one at British Airways.
Either way, the IATA, or the aviation industry body, said that it now expects airlines around the world to post $2.5 billion in profits in 2010. This is a big jump from the previous forecast in March of a loss of $2.8 billion.
The IATA went on to say that passenger traffic is now expected to grow some 7.1 percent this year and cargo volumes could grow as much as 18.5 percent. Once again this is compared to the previous forecasts of 5.6 percent and 12 percent growth respectively. Industry revenue is forecast at $545 billion, which is up from $483 billion in 2009.
The director general and CEO of IATA, Giovanni Bisiganni, said that the global economy is recovering from the depths off the financial crisis a lot quicker than what was anticipated. Airlines are now benefiting from a strong traffic rebound that is pushing the industry out of the red.
Industry revenues are forecast to be about $545 billion in 2010. This is up from the $483 billion in 2009, but still well below the $564 billion that was made back in 2008. CEO of IATA went on to warn that this comes with some important health warnings. Things like natural disasters and a stagnating economy is still leaving European carriers in harms way.
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Filed under Business & Finance, Travel News, World News