International Air Transport Association (IATA)

[Aviador]

[textarea]IATA estimate of airline losses halved

A much stronger recovery in demand for air travel has led IATA to halve its loss forecast for airline losses in 2010 to $2.8 billion. This compares with a collective industry loss of $5.6 billion predicted 3 months ago.

Revenues are predicted to rise to $522 billion - $44 billion more than previously forecast and a $43 billion improvement on 2009. IATA also lowered its 2009 loss estimate to $9.4 billion from the previously forecast $11 billion.

Improvements in the forecast for 2010 are driven by economic recovery in the emerging markets of Asia-Pacific and Latin America, whose airlines posted international passenger demand gains of 6.5% and 11.0% respectively in January. North America and Europe are lagging with international passenger demand gains of 2.1% and 3.1% respectively.

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[textarea]IATA report increase in demand for premium travel

Demand for first and business class airline seats jumped again in June, according to figures from the International Air Transport Association (IATA). In its monthly premium monitor, the airlines group said demand for premium tickets was 16.6% higher than a year ago, against a 9.5% rise for economy.

Growth for the first half of the year was 11.9% for premium and 6.3% for economy. Revenue on premium seats was just over 40% higher in June than a year ago, reflecting both the increased number of passengers and a strong rise in average fares. Asian, South American and Middle Eastern markets were strong, but transatlantic routes remained sluggish.

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[News Guru]

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[textarea]IATA reports 10.5% increase in passenger demand

The number of airline passengers continued to grow in September, the International Air Transport Association (IATA) said, but it warned that the aviation industry may not yet be clear of the problems caused by the recession.

International passenger demand rose by 10.5% last month, compared to September 2009, stronger than the 6.5% rise seen in August this year. This growth in demand outstripped the growth in supply in all regions, with a global capacity increase of only 7.3% year-on-year, pushing global load factors up to 80%.

The middle east showed the strongest growth, with an increase in traffic of nearly 24% year-on-year, followed by Africa, which was up 16%. Traffic in North America returned to pre-recession (early 2008) levels, with an 11.1% rise, while in Europe passenger numbers are now 2% above the pre-recession figures, with an 8.4% rise. Asia-Pacific airlines saw an 8.6% traffic increase, while for Latin America airlines, passenger numbers rose by 6.6%.

However, despite the rise in traffic, IATA warned that a larger than anticipated fall (12.1% below September 2009) in the amount of cargo that airlines carried last month reflects weak consumer confidence. Giovanni Bisignani, IATA’s CEO, said: ‘While September’s passenger growth is reassuring, the accelerating decline of air freight, including in Asia, is an early indicator of some turbulence ahead.’

Mr Bisignani also warned that the effect of increased taxation in Germany and the UK could hamper the recent growth.He said: ‘Government actions can impact the sustainability of the recovery. Austerity measures will dampen demand. When combined with new or increased taxation, as we have seen in Germany and the UK, the challenges are even greater. Governments must understand that air transport is an economic catalyst.’

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[textarea]IATA increase global airline profit forecast to $15.1bn

The International Air Transport Association has predicted the air travel industry will make $15.1 billion this year, in what is the latest change to its forecasts for 2010. At the beginning of the year IATA predicted the global aviation industry would make a multi billion dollar loss in 2010, but the industry body has since drastically changed its forecast.

The latest figure represents a rise of more than $6 billion on its previous in September, when IATA said the industry would make $8.9 billion in profit this year. The group predicted a loss of $5.6 billion at the start of the year, halved this in March, predicted a profit in June, increased this in September, and now again in December. Either the industry has enjoyed a massive turnaround in fortunes, or someone is not very good at forecasting !

Giovanni Bisignani, IATA’s CEO, said: ‘Our profit projections increased for both 2010 and 2011 based on an exceptionally strong third quarter performance. Despite the strong figures, profit margins remain weak, and we still see the recovery pausing next year after a strong post-recession rebound. Margins remain pathetic. With a 2.7% net margin in 2010 shrinking to 1.5% in 2011, we are nowhere near covering our cost of capital. The industry is fragile and balancing on a knife edge.’

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Re: IATA says air traffic ‘fully recovered’

[textarea]IATA says air traffic ‘fully recovered’

The level of international air travel is now 4% above the pre-recession peak of early 2008, according to the latest figures from the International Air Transport Association (IATA). Its November traffic figures show an 8.2% year-on-year growth in passenger numbers. This is a slight fall on the level of growth seen in October (10%). Giovanni Bisignani, IATA’s CEO, said the industry is ‘shifting gears in the recovery cycle. Growth is slowing towards normal historical levels in the 5% - 6% range.'

Of the regions, the African airlines were the only ones to show an increase in growth rates from October (12.6%) to November (16.4%). European airlines saw a growth in traffic of 7.3%, while passenger numbers for North American airlines grew by 9.5%, Asia Pacific airlines by 5.8% and Middle East carriers by 16.7%. Latin American airlines, which have been some of the strongest performing over the past year, showed no growth in passenger numbers.

Mr Bisignani said the latest passenger figures confirm that the aviation industry is on track to deliver a profit of $15.1 billion this year, despite being one of the worst hit sectors during the recession. In 2009 airlines globally lost $9.9 billion. For 2011, IATA predicts a reduced profit of $9.1 billion. Mr Bisignani said: ‘That’s a 1.5% margin. More hard work will be needed in the New Year to achieve sustainable levels of profitability.'

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[textarea]Demand for flights outstripped increase in supply in 2010

The number of air passengers worldwide grew by 8.2% last year, but airlines only increased capacity by 4.4%, according to new figures from airline group the International Air Transport Association (IATA).

Middle eastern airlines performed the strongest in 2010, with a growth in passenger demand of 17.8%, followed by African airlines, which recorded a growth of 12.9%. The smallest growth was seen among European airlines, which recorded a growth in demand of 5.1%. Asia Pacific airlines grew by 9%, North American airlines by 7.4%, and Latin American airlines by 8.2%.

Giovanni Bisignani, IATA’s Director General and CEO, said airlines ended the year slightly ahead of early 2008 volumes, but with a ‘pathetic’ 2.7% profit margin. He said: ‘The world is moving again. After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010.' Looking forward to 2011, he said the challenge would be ‘to turn the demand for mobility into sustainable profits’.

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[TheLocalYokel]

Re: IATA

Well, I believe that UK airports would need a bit of persuading that passenger levels are 4% above the pre-recession 2008 peak.

I can't think of one that is currently experiencing its highest ever number of passengers.

Most are down by double digit percentages on their best ever years - for most that means 2007 or 2008 - some by 20 or 30%.

 

[News Guru]

Re: IATA

[textarea]IATA slash global airline profit forecast

The International Air Transport Association (IATA) has slashed its profit forecast for the airline sector as a result of a number of factors, including rising fuel costs. It expects global airline profits to be just $4bn in 2011, compared to $18bn in 2010. In March, it had forecast profits of $8.6bn for this year.

Giovanni Bisignani, IATA director general and CEO, said: ‘Natural disasters in Japan, unrest in the Middle East and North Africa, plus the sharp rise in oil prices have slashed our profit expectations to $4 billion this year.'

He said that overall capacity, which combines passenger and cargo capacity, is expected to expand 5.8% this year, which is above the 4.7% anticipated increase in demand.

Airlines in Asia-Pacific are expected to remain the most profitable in the sector. For European airlines, much of the profit forecast for this year is expected to be generated on more buoyant long-haul markets.

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[textarea]Airlines say mobiles and laptops caused plane instrument failures

Mobile phones and other electronic devices have disrupted flight instruments 75 times over 6 years, according to a confidential report prepared for the aviation industry, the Telegraph reports. Pilots and crews told IATA that between 2003 and 2009, mobile phones, iPods, laptops and other equipment all caused problems.

A total of 26 of the incidents affected flight controls, including the autopilot, autothrust and landing gear. A further 17 reports hit navigation systems, there were 15 incidents of interference affecting communications systems and 13 triggered warnings including ‘engine indications’. During one flight electronic devices are believed to have caused the autopilot to disengage at 4,500ft.

The report says: ‘The autopilot disengaged by itself and the associated warnings / indications came on. [Flight attendants] were immediately advised to look out for PAX [passengers] operating electronic devices. [Attendants] reported that there were 4 PAX operated electronic devices (one hand phone and three iPods).’ After an announcement telling passengers not to use their electronic devices, ‘for their safety and the safety of the flight’ the flight continued without any further incident.

In another incident it’s claimed a GPS unit in the cabin gave an incorrect reading because two laptops were being used nearby. Electronic interference was also blamed for rapidly changing altitude measurements on a separate flight. Passengers were asked to switch off their devices and the readings returned to normal.

The IATA report does not verify that electronic devices caused the problems, but records the impressions of pilots and crew. However, the UK Civil Aviation Authority has found that electronic interference from phones can lead to ‘errors’ on instrument displays and create noise on pilot radios. Boeing said the problems could be particularly severe on older aircraft whose instruments are not well shielded.

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[Aviador]

The BBC has reported Europe's airlines will make a combined loss of $1.1bn (£706m) this year, the International Air Transport Association has warned.

 

[News Guru]

[textarea]IATA sees airline profitability prospects improve for 2012

IATA has revised its 2012 financial forecast upward, predicting the world’s airlines will earn a $4.1 billion profit for the year compared to $3 billion forecast in June. But profits will still be less than half the $8.4 billion airlines earned in 2011.

Announcing the revised forecast from Singapore Oct. 1, IATA DG and CEO Tony Tyler said the fall in profitability this year will not be as bad as previously expected, “but we should not get too excited.”

Full Story: http://atwonline.com/airline-finance-da ... -2012-1001[/textarea]

 

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[textarea]IATA: Strong rise in demand for premium air travel

The demand for premium air travel rose by 4.2 per cent in December compared to the previous year, according to the latest air traffic figures from IATA.

In December last year, premium travel numbers were up by 5.5 per cent on a year ago and in line with the November result of 5.4 per cent.

Read more: http://buyingbusinesstravel.com/news/17 ... air-travel[/textarea]