Geneva-and Montreal- based IATA (the International Air Transport Association which represents 240 airlines worldwide) predicts that revenue will be 20% higher than previously forecast just three months ago. This means that carriers worldwide are now likely to generate $ 12.7 billion in 2013.
This new forecast comes as airlines in the U.S. and Europe have led moves to increase sales revenue by charging for “extras” such as checking in baggage and having pre-allocated seating. IATA predicts that so-called “ancillary” revenue (revenue gained through non-ticket sources) is likely to account for 5% of revenue versus 0.5% in 2007.
Airlines worldwide are now expected to post a profit in 2013. Both Asia and North America are seen as the market leaders with projected earnings of $ 4.6 billion and $4.4 billion respectively.
As IATA kicked off its AGM in Cape Town yesterday, Tony Tyler the Associations CEO commented that “Airlines have done a pretty good job of being profitable in very difficult circumstances”.
Source: iata.org
