Airline profits heading high as Europeans struggle

By SCOTT REID
Published on 21/03/2013 00:00

GLOBAL airline profits could touch £7 billion this year, higher than previously forecast – though European carriers will only just break even.

The collective post-tax profit that the International Air Transport Association (IATA) predicts is an increase on the £5.6bn cited in its previous report. The body represents 80 per cent of global carriers. It said the higher forecast was driven by stronger revenues and better cash flows.

Among European airlines, the IATA reckons 2013 will see carriers report a £533 million profit. It said this was better than the £200m last year, but “barely different from break-even”.

The IATA added: “The controversy over the draconian bailout proposal for Cypriot financial institutions is a clear indicator that the eurozone crisis is not over.”