Iata cuts 2010 loss forecast in half

Airline association Iata has halved its loss forecast for 2010 – but European carriers are still lagging behind the rest of the world.

The association is predicting a $2.8 billion loss for the global aviation industry in 2010, down significantly from the $5.6 billion loss it predicted in December last year.

Iata has also lowered its 2009 loss estimate to $9.4 billion from the previously forecast $11 billion loss.

Despite the improved forecast, European and north American carriers are still predicted to struggle.

Economic recovery in Asia-Pacific and Latin America is expected to be reflected in airline profitability in those regions, but European carriers are predicted to make a $2.2 billion loss.

Iata director-general Giovanni Bisignani said liberalising airline ownership and market access would be key to the recovery of both European and US markets.

“Brands, not flags, must guide the industry to sustainable profitability. That cannot happen until governments throw away the outdated restrictions of the bilateral system,” he added.