IATA : PROFITABILITY TO FLOW INTO THE INDUSTRY

KUALA LUMPUR, July 20 (Bernama) -- The airline industry can see a further
improvement in both the passenger and cargo business with profitability kicking
in, in the last quarter, and further improvements expected in the year ahead.

In a survey conducted by the International Air Transport Association
(IATA) last month, 70 per cent of respondents reported improved profitability
and a majority from all regions, expect either stability or further improvement.

In June, IATA, revised upward its own forecast for the 2010 industry
financial performance to a profit of US$2.5 billion from a loss of US$2.8
billion previously.

It said the sharp improvement in both cargo and passenger demand seen in
early 2010, continued during the second quarter of the year.

"More than 80 per cent of respondents indicated rises in passenger demand.
The cargo side of the business also expressed a similar sentiment," it added.

Expectations for further improvements in demand over the next 12 months
ahead, sit at a similarly high level, although just over a quarter of
respondents now indicate that cargo traffic growth may moderate, possibly a
function of the restocking phase of the inventory cycle coming to a close.

Yields have also been on the uptrend, said IATA, adding that industry
employment looks to be growing again in line with increasing output.

"The regions experiencing faster recovery in traffic have been more active
on this front.

"The outlook for the next 12 months is for further expansion in
employment, although this may be slowed by airlines seeking productivity
increases from economies of scale," said IATA.
-- BERNAMA