IATA Raises Airline Profit Forecast 73% on Europe Travel

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    IATA Raises Airline Profit Forecast 73% on Europe Travel:)

    Sept. 20 (Bloomberg) -- The International Air Transport Association raised its 2011 forecast for global airline profits by 73 percent because of stronger-than-expected demand in Europe and the Middle East.

    Carriers will earn $6.9 billion of profits this year on sales of $594 billion, a margin of 1.2 percent, the group, whose members account for 93 percent of global passenger traffic, said in a statement today. That compares with a June forecast for earnings of $4 billion and last year's profit of $16 billion.

    The group raised its profit forecast for European carriers by $900 million from June as a weak euro boosts inbound tourism and exports. The Middle East forecast was increased by $700 million as travel withstands political instability, IATA said. Still, it predicted global profits will decline next year as economic growth stalls in debt-laden western nations.



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