Iata raises estimate of airline profit

The global airline industry is likely to report a bigger-than-expected net profit of 6.9 billion U.S. dollars in 2011 because of an increase in passenger demand, according to the latest estimates from the International Air Transport Association released Tuesday. In June, the aviation industry body predicted a net profit of $4 billion for the airline sector this year, compared with $16 billion in 2010. \"Airlines are going to make a little more money in 2011 than we thought. That is good news. Given the strong headwinds of high oil prices and economic uncertainty, remaining in the black is a great achievement,\" Tony Tyler, IATA\'\'s director general and chief executive, said in Singapore, according to Wall Street Journal Tuesday. Passenger demand has been stronger this year, and IATA now expects 5.9% more passengers in 2011 compared with 2010, up from 4.4% growth projected in June. That translates to 2.8 billion passengers for the industry this year. Freight volumes, however, are likely to stagnate with a 1.4% expansion in 2011, lower than the 5.5% predicted by IATA in June. That comes to 46.4 million metric tons of cargo for the year. The industry body expects North American carriers to report a net profit of $1.5 billion, European carriers a profit of $1.4 billion, and the Asian region a net profit of $2.5 billion. IATA expects airlines\'\' profits to fall to $4.9 billion next year on revenue of $632 billion as the global economy remains shaky. In the next year, IATA expects passenger markets to grow 4.6% and cargo volumes to rise 4.2%. Unit fuel costs are likely to fall slightly as the average Brent crude oil price is expected to fall to $100 a barrel, from $110 a barrel this year, it said.