IATA halves loss forecast to USD 2.8 billion for 2010

The International Air Transport Association (IATA) halved its loss forecast for 2010 to USD 2.8 billion (compared to the USD 5.6 billion loss forecast in December 2009). The improvement is largely driven by a much stronger recovery in demand seen by year-end gains that continued into the first months of 2010. Relatively flat capacity translated into some yield improvement and stronger revenues. IATA also lowered its 2009 loss estimate to USD 9.4 billion from the previously forecast USD 11.0 billion loss.

Improvements are driven by economic recovery in the emerging markets of Asia-Pacific and Latin America whose carriers posted international passenger demand gains of 6.5 per cent and 11.0 per cent respectively in January this year. North America and Europe are lagging with international passenger demand gains of 2.1 per cent and 3.1 per cent respectively for the same month.