In its analysis, the IATA said prospects for the industry look positive, and cited easing in oil prices, steady passenger traffic, and signs of a recovery in the freight market as factors that will support the industry. According to IATA, these factors will counterbalance the European debt crisis.
Compared to the previous forecast carried out in March 2002, the IATA expects Latin American and North American carriers to have better prospects during this current quarter. On the other hand, Asia-Pacific, European and Middle East carriers are expected to face a less optimistic quarter.
In 2011, the airline industry generated a profit of $7.9 billion. The forecast profit of $3 billion for 2012 is in line with the lingering economic slowdown, instability in the banking and financial sectors, business uncertainty, and government debt crisis.
The IATA is a worldwide industry trade group of airlines whose task is to represent, guide, and serve the airline industry. The group represents about 240 airlines, which account for nearly 90% of scheduled international air traffic. IATA has more than 150 offices around the world.