Crisis-hit global Airline Industry may stem its growing losses and even record modest profits next year, with air carriers in Asia-Pacific estimated to post profits this year, IATA said today.

A major reason for this upward revision by the International Air Transport Association (IATA) was better performance by the airlines through better matching of capacity to demand and various cost-cutting measures, IATA estimated in its latest financial forecast titled ‘Downward Pressure Starting to Ease’.

Noting that the European sovereign debt crisis continued and China was experiencing moderate growth, IATA Director General and CEO Tony Tyler said, “While some of these risks have diminished slightly over recent months, they continue to take their toll on business confidence. The outlook improvement is due to airlines performing better in a difficult environment”.

The Global Airlines’ body estimated that Asia-Pacific airlines were set to post a $ 2.3 billion profit for 2012, which was $ 0.3 billion better than previously forecast.

But these carriers, which catered to 40 per cent of the global cargo market, were “the most exposed to weak cargo demand”.

While European Airlines were expected to post the largest loss of any region at $ 1.2 billion, worse than previously forecast, those from North America were estimated to post profits of $ 1.9 billion in 2012, up $ 0.5 billion from the previous forecast, IATA predicted.

In its first look at 2013, IATA estimated a rise in industry profits to $ 7.5 billion, as forecasts pointed to “slightly stronger economic growth and lower oil prices”.

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