Airlines 'set for collective profit'

Airlines could make a collective profit this year for the first time since 2000 due to a combination of growth and cost cutting, according to the head of the International Air Transport Association (IATA). Speaking at IATA’s Asian summit in Singapore this week, director general Giovanni Bisignani said: “We expect to make in the range of US$2 to $4bn (£1.1bn to £2.2bn). That would be the first positive result in four years.” Airlines have lost a total of more than $30bn since 2000 and until earlier this year passenger numbers were continuing to decline. In 2003, global traffic was down by 2.4% over 2002 and in Asia passenger numbers were 9.4% lower because of SARS. Mr Bisignani said: “Without surprise, 2004 will be better.” Global passenger traffic is expected to rise seven per cent this year while in Asia growth will be double that. ” But it will take several years (for airlines) to rebuild the balance sheets that have been ruined by over $30bn (£16.6bn) in the last three years for the industry as a whole,” added Mr Bisignani. “For this to happen in today’s competitive world, the industry must move to a new cost structure.”