Airline outlook: Less turbulence, more profit (2)

IATA is optimistic about China's aviation industry, although profits are expected to fall this year due to a slowdown in national economic growth.

"China's economy is still healthy compared with the rest of the world," Tony Tyler, IATA's director general and CEO, said at IATA annual general meeting in Beijing in June.

The Chinese government is also taking some proactive approaches to promote the industry, he added.

According to the 12th Five-Year Plan (2011-2015) for the aviation industry, 70 new airports are planned to open between 2011 and 2015.

"The scale of aviation infrastructure development that we see here is unprecedented," Tyler said.

The global passenger market also performed well recently, leading IATA to revise its annual forecast for growth to 5.3 percent, up 0.5 percentage points from the outlook in June.

IATA also revised its forecast upwards on its 2012 global aviation outlook in Oct and voiced optimism about 2013.

Airline income rose to $4.1 billion in October from $3 billion in June, while the industry's net profit margins increased to 0.6 percent from 0.5 percent.

The association forecasts that the increasing price of jet fuel will cost the industry an additional $1 billion, bringing the price tag to $208 billion for the year.

But "it means that airlines are keeping their heads above water better than we thought", said Tony Tyler, IATA's director general and CEO, adding that they perform better in a difficult environment.

"The airlines have restruc-tured their businesses," he noted.

To cope with rising fuel costs, new fleets are needed to make airlines more efficient.

We recommend: A Decade of Fastest Development Eastern Boom Lightens Western Gloom Oct. data released, inflation slows Gold collection issued to mark 'Year of Snake' China: A Fast-growing Force in IPR 13th Int'l Automobile Industry Exhibition China Int'l Industry Fair opens in Shanghai Caofeidian coal wharf put into use Canton Fair wraps up on Sunday