AlQa'dah 15, 1433, Oct 1, 2012, SPA -- International aviation's trade group Monday revised upwards its profit outlook for 2012 despite the continuing eurozone crisis, low business sentiment and volatile fuel prices, according to dpa. Profits would be 4.1 billion dollars instead of 3 billion dollars, the International Air Transport Association (IATA) in Singapore said in its quarterly outlook announcement. However, that statement warned against excessive optimism, since last year, airlines made more than double the revised figure, reaching 8.4 billion dollars. Little relief was found in fuel costs, it said, but the forecast was in line with June predictions. "We are still basing out outlook on oil at 100 dollars a barrel," it said. Passenger numbers increased half a percentage point to 5.3 per cent growth for the year, still below the historical trend of 6 per cent growth, the association said. Poor business sentiment was clearer in cargo, as volumes were expected to tighten to end the year 0.4 per cent under the previous year's levels. Airlines are seeing profit margins of just 0.6 per cent, with the Europeans the weakest link. June predictions foresaw a loss of 1.1. billion dollars, which the body now says will be 1.2 billion, which it attributes to heavy regulation, "high taxes, insufficient capacity at many key airports and an air-traffic management system badly in need of modernization." Asia-Pacific airlines however are expected to be the top earners, with 2.3 billion dollars, a 300-million-dollar improvement on expectations. North American airlines showed the best improvement on prospects since the body's last forecast, the report said, up 500 million dollars to 1.9 billion. Middle East airlines have also seen a big jump, from 400 million dollars to 700 million expected for the year, boosted by very competitive cargo and passenger markets. The outlook for 2013 suggested moderate gains, on easing fuel prices and government an central bank actions that will raise GDP growth from 2.1 per cent to 2.5 per cent. This will result in industry profits rising to around 7.5 billion dollars.
