Iata predicts ‘break even’ for Africa

African carriers are
expected to break even
this year, according to the
latest International Air
Transport Association
figures.
“This is unchanged
from the previous forecast
but down from the
$100 million profit that
the region posted in 2010,”
Iata director general and
CEO Giovanni Bisignani
said last week.
“Strong economic
and transport demand
growth on the back of
foreign direct investment
and rapidly growing
trade links with Asia
are keeping the region’s
carriers out of the red,” he
said. “However, they face
intensifying competition
from Middle Eastern
carriers and others for
lucrative business traffic.
Iata downgraded its
outlook for the industry
as a whole to $8.6 billion
from the $9.1 billion it
estimated in December
2010. This is a 46% fall
in net profits compared
to the $16 billion (revised
from $15.1 billion) earned
by the industry in 2010.
On expected industry
revenues of $594 billion,
the $8.6 billion 2011 profit
equates to a net profit
margin of 1.4%.