Global aviation may step out of the red this year: IATA

05 April 2007

According to Bisignani, Asia will become the world's largest aviation market by 2010, accounting for one-third of the world's air traffic.

"Aviation is the world's most exciting industry, and Asia is the region that is going to drive it forward," Bisignani said at the Asia Pacific aviation media association's lecture here. "Asia's growing importance is clearly defining a new leadership role in all aspects of the industry."

According to Bisignani, the IATA, a Geneva-based international governing body that regulates international air transport, expects the global airline industry to make a combined net profit of $3.8 billion this year.

IATA estimates that six years of losses cost the international airline industry more than $40 billion, as airlines hit a slump mainly due to the Sept 11, 2001, terrorist attacks, high jet fuel prices and health scares, such as SARS.

Of the estimated $3.8 billion in profit that airlines are expected to chalk up this year, European airlines should account for $2.4 billion, while Asia-Pacific airlines account for the balance $1.7 billion. IATA says that higher traffic would be the main factor behind a rise in profits.

However, North American airlines are likely to lose a combined $600 million this year, thanks to high restructuring costs.