ASIA PACIFIC CARRIERS SHOWING MOST DRAMATIC IMPROVEMENT

From Saraswathi Muniappan

GENEVA, Dec 15 (Bernama) -- Asia Pacific carriers are showing the most
dramatic improvement, driven by recovery in some of the region's economies,
according to the International Air Transport Association (IATA).

"Stronger economic growth is expected in emerging economies, such as China,
India and Brazil, which will benefit air travel and freight in these region,"
IATA chief economist Brian Pearce said at its Global Media Day here Tuesday.

China's gross domestic product (GDP) growth is forecast to grow by nine per
cent in 2010.

Pearce said reasonable growth is expected for the industry going forward but
in term of yields it will be a modest growth.

Asia Pacific carriers are expected to post a loss of US$700 million, much
lower than losses of US$3.4 billion in 2009.

European carriers will generate the largest losses of any region at US$2.5
billion, said IATA in a statement.

However, it will be an improvement over the US$3.5 billion loss that the
region's carriers are expected to post in 2009.

Slow economic recovery in the region, combined with limited ability to
adjust capacity due to airport slot regulations, is hindering the region's
airlines.

Latin American carriers, on the other hand, will be the only profitable
regional grouping in both 2009 and 2010, according to the association.

The profit each year is expected to be US$100 million. This is largely due
to the benefit of relatively strong economies in South America and the
efficiencies gained through regional airline structures.

Middle Eastern carriers will see losses shrink from a US$1.2 billion loss in
2009 to a US$300 million deficit in 2010, IATA said.

A strong long haul connection business over Middle East hubs will provide
some insulation against the impact of Dubai's financial difficulties, it said.

African carriers will deliver a loss of US$100 million in 2010 consistent
with the US$100 million loss of 2009, the association said.

Relatively strong economies and increasingly liberal markets are being
offset by competitiveness challenges, it said.

North American carriers will see losses reduced from US$2.9 billion in 2009
to US$2 billion next year, IATA said.

The relative improvement is largely the result of pricing power and cost
reductions gained through capacity adjustments, it said.

-- BERNAMA