Airlines to net $12.7B

Global airlines are set to post profits of $12.7 billion this year, the International Air Transport Association forecast yesterday, revising higher a previous estimate.

This compared with $7.6 billion in profits last year and was an improvement on a March forecast of $10.6 billion.

If confirmed, it would make 2013 the industry’s third-best year since 2001.

But IATA head Tony Tyler said business was “still tough” and noted that airlines were operating with a 1.8 percent profit margin.

This was a “four dollar profit per passenger, less than the price of a sandwich in most parts of the world,” he told the global airline body’s annual general meeting.

Fuel costs had increased by 55 percent since 2006, he complained.

IATA estimated airlines would carry some 3.1 billion people this year — above 3 billion for the first time.