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%.