IATA Airline Industry Forecast - June 2013

A summary of the key points from the International Air Transport Association IATA outlook for airline financial performance in 2012-2013. Published by IATA June 3rd, 2013

• We [IATA] have increased our forecast for 2013 industry net profits from $10.6bn to $12.7bn;
• The main reason for the upgrade is further evidence that there has been a structural improvement in airline financial performance;
• Business conditions remain difficult: global GDPgrowth this year has been revised down a little to 2.2%, oil prices remain high but have been revised lower to $108/b;
• The largest improvements in the forecast are in North America and Europe, where airlines have benefited from recent changes leading to some consolidation;
• Asia-Pacific airlines continue to generate the highest margins and largest $ profits, but have seen a deterioration since 2011 and continue to suffer from soft cargo markets;
• Financial performance is improving due to efficiency initiatives and changes in structure, but the level of profitability is still not sufficient to eliver a 'normal' return to investors.

The full report may be downloaded or viewed on the IATA website.