Following five years of effort, planning, and transformation, airline carriers anticipate a profit for 2007, according to the International Air Transport Association (IATA). This will be the first black number since 2000. In 2006, airlines nearly broke even. The industry is $200 billion in debt.
The projected earnings this year are $5 billion, said director-general Giovanni Bisignani.
He said that compared with 2002 “labor productivity is up 56 percent, distribution costs are down 13 percent, nonfuel unit costs are 15 percent lower and average load factors are at a record high of 76 percent.”
IATA has outlined six priorities:
- To improve safety by 25 percent by the close of 2008
- To improve security, including use of biometric identification
- To simplify business through electronic communication
- To develop a more efficient infrastructure
- To liberalize airline consolidation and
- To become an industry of low emissions.
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