In a slowly improving economy, reports from the International Air Transport Association (IATA) show that international air carriers are seeing much better days than previously forecasted. While losses are still expected for this year, the new forecast shows only half the losses that were once calculated.
The industry recovery is largely based on substantial year-end gains that were not expected in December. The IATA also lowered its estimate for 2009 from $11 billion to $9.4 billion, according to CNN.
Resurgence, while very real, is coming mostly by way of airlines based out of Asia Pacific and Latin America. North America and Europe continue to be the weakest markets so far. European carriers are anticipated to lose $2.2 billion this year, and North American airlines are expected to lose $1.8 billion. Conversely, Asian Pacific and Latin American carriers should profit.
The IATA also sites passenger growth and airlines cutting capacity to deal with fuel cost to play roles maximizing revenues.
