IATA releases Airlines Business Confidence Index Apr-2010

There was a further improvement in the indicators of airline business confidence, measured by IATA’s quarterly

survey, this April. An increased majority of respondents indicated that profitability had improved during the

previous quarter, although regional variation remains with Asian, Latin American and Middle Eastern airlines

more positive and more pessimism among European airlines. Two thirds expect profitability to improve over the

next 12 months. While revenue growth looks to be strong, concern is building over the rise in fuel cost ahead

which may hamper a speedy return to profitability at the industry level. IATA’s own forecast predicts that airline

net losses will be cut substantially from 2009 levels but a loss in the region of $2.8 billion is still likely in 2010.