IATA forecasts higher results for airlines in 2010

African airlines are expected to record improved demand by 7.4 per cent, however, this is not expected to return the regional carriers into profitability though losses are expected to be halved to $100 million compared to the previous forecast of $500 million.

Airlines in the region are faced with strong competition for market share, IATA said.

Europe is expected to report the largest loss of $2.2 billion followed by North America with $1.8 billion mainly due to slow economic recovery and “faltering consumer confidence.”

The low yields in long-haul markets that connect over Middle East hubs, especially Dubai and Qatar that have positioned themselves as major transit points, is expected to impact profitability in the region negatively with a loss of $400 million expected despite strong demand.

Both passenger and cargo yields are expected to show an improvement this year, despite premium yields, from premium travel, expected to remain low.