Posted by: youngragingbull | June 3, 2013

Airlines to earn $12.7B this year: IATA

According to a new forecast from the IATA, an industry trade group, the world’s airlines are expected to earn $12.7 billion this year as travel demand increases helping airlines fill planes to capacity.

The estimate represents a 67% increase over the airlines’ $7.6 billion in profits last year. The new estimate is a 20% jump over IATA’s estimate just three months ago.

IATA said that if its forecast holds, the global airline industry will have its third strongest year since 2001.

The biggest factor is full planes. Airline occupancy will rise to a record 80.3% this year, from an estimated 79.2% last year, the group said. Passenger traffic will rise 5.3%, but the number of seats to carry them will rise just 4.3%, the group said. This will be the second year in a row that airlines have added fewer seats than passengers.

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