The International Air Transport Association (IATA) released its revised industry outlook for 2012. Global industry profits are expected to be US$3 billion, unchanged from the last update in March. A fall in oil prices, stronger than expected growth in passenger traffic and a bottoming out of the freight market are driving some improvements in the profitability outlook. However, this is offset by the continued and deepening European sovereign debt crisis, which has led markets to expect a further deterioration and damage to economic growth, the adverse impact of which has been built into this forecast.
Cargo demand has bottomed out, after the fall in 2011, and is in line with the moderate improvement of business confidence in countries outside Europe. Overall 47.8 million tonnes of freight are expected to be shipped by air in 2012, basically unchanged from the 47.7 million tonnes carried in 2011.