Global Airline Industry Lifts Profit Outlook

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Sept. 20--SINGAPORE -- The global airline industry Tuesday raised its profit outlook for 2011 to 6.9 billion dollars as strong passenger demand offset the impact of the weakened economies.

The forecast was 73 per cent higher compared to June, when the International Air Transport Association (IATA) slashed its profit projection to 4 billion dollars.

"Despite the economic doom and gloom, people are travelling," IATA director general Tony Tyler said in Singapore.

Passenger volumes were up 6.4 per cent year-on-year through July, he said.

Tyler said revenues for the industry were likely to reach 594 billion US dollars this year.

For 2012, global airlines expected "a tough year" with profits falling back to 4.9 billion dollars on revenue of 632 billion dollars, he said.

"Certainly the industry is weak, but it is still profitable," he said.