Airline Industry Profits Triple In 2010.... But A Major Slump Is Coming Next Year

Airline Fail Container

The International Air Transport Association has tripled its 2010 profits forecast for the airline industry to $8.9 billion from $2.5 billion.

The industry has experienced a faster than expected rebound, and this has forced its profit outlook to be increased. At the same time however, they have warned that industry profits will fall substantially in 2011.


But IATA said in its first estimate of results for the industry next year that profits for the sector, widely seen as an indicator of general economic activity, would then drop to 5.3 billion dollars.

“So it’s a significant improvement, much stronger than fore-casted but I would say it’s not time for a big celebration,” the IATA chief said.

“The real question in this forecast is how long we see the recovery lasting. It is clear that there will be a slowdown in the fourth quarter,” he said, adding that air travel was already tapering off.

Thus 2010 profits could be the near-term peak.

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