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Global airlines to post profits of £8.3bn

Published: 03/06/2013 - 14:05

International airlines are predicted to post profits of $12.7 billion (£8.3 billion) in 2013 thanks to cost-cutting measures being rolled out across the industry.

According to the International Air Transport Association (IATA), global carriers will buck the wider trend of falling earnings brought on by the economic downturn and outdo original estimations published by the body earlier this year.

In March, the IATA predicted international companies would post $10.6 billion in profits, compared with $7.6 billion last year.

The IATA report, which was published to coincide with its annual meeting this week, said: "We now see structural change and airline efficiency measures to be the more important drivers of an improved financial performance this year."

However, officials also noted that profit margins remained thin for global carriers, despite the fact record passenger numbers and low oil prices pushed earnings upward.

This year, airlines are expected to fill 80 per cent of seats and carry a record 3.13 billlon passengers, the IATA report suggested.

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