AIRLINES TO POST GLOBAL PROFIT OF US$2.5 BLN IN 2010 - IATA

KUALA LUMPUR, June 7 (Bernama) -- The International Air Transport
Association (IATA) expects airlines to post a global profit of US$2.5 billion
this year compared with the previous forecast released in March of US$2.8
billion loss.

Industry revenues, meanwhile, are forecast to be US$545 billion in 2010
which is higher than the US$483 billion in 2009, but still below the US$564
billion achieved in 2008.

"The global economy is recovering from the depths of the financial crisis
much more quickly than could have been anticipated. Airlines are benefiting from
a strong traffic rebound that is pushing the industry into the black," said IATA
Director-General and Chief Executive Officer Giovanni Bisignani.

"We thought that it would take at least three years to recover the US$81
billion (14.3 per cent) drop in revenues in 2009. But the US$62 billion top line
improvement this year puts us about 75 per cent on the way to pre-crisis
levels," he said in a statement Monday.

He said the US$2.5 billion profit came with some important health warnings.

"First, this represents a net margin of just 0.5 per cent, which is a long
way from sustainable profitability. Second, a major part of the global industry
is still posting big losses.

"A stagnating economy, strikes, natural disasters, and a currency crisis
have left European carries struggling with an anticipated US$2.8 billion loss,"
he added.
-- BERNAMA