Good week

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 © Rex Features
AIRLINES The world's air carriers look set to hit an all-time profit record for 2010, underscoring their recovery from the near death experience of the 2008-9 financial crisis by raking in a handsome $15.1 billion. According to the International Air Transport Association the rise of 15 mega-­cities in Asian cities by 2015, and the expansion of their middle classes, means strong growth to 3.2 billion passenger journeys a year, because "air travel is about connecting cities".

 

Bad week

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 © Rex Features
AIRLINES Despite an expected 2010 industry profit record of $15.1 billion, airline margins are still "pathetic" at 2.5%, says International Air Transport Association chief economist Brian Pearce, who sees overcapacity and rising costs - including, ominously, for fuel - pushing 2011 profits down to $9 billion, with western demand for leisure travel unlikely to recover for two years. IATA director general Giovanni Bisignani says airlines are "still a sick industry".

 

 

Source: Flight International

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