Flight timings aren’t the only thing which is padded by the airline industry. The International Air Transport Association (IATA) said that the global airline industry would not be able to make enough profits following the financial crisis. But the crisis did not make any difference to the profits made by the airline industry. According to a recent announcement made by the IATA, the airline industry made an aggregate profit of $2.5 billion.
The demand for seats is on the rise and people are traveling a lot these days. According to a report by the USA Today, Giovanni Bisignani, “The global economy is recovering from the depths of the financial crisis much more quickly than could have been anticipated”.
In the year 2009, marked the downfall of the global airline industry and suffered an $81 loss of revenue, which marks a drop of around 14.3 % from the year 2008. This made the seats a bit cheaper, but it slashed out on all the routes and the amenities which were provided by the airlines. The IATA expects that the revenues this year would be $62 billion, which still leaves a lot of space for the airlines to make up for the losses. According to Bisignani, $2.5 billion sounds like a lot of money, but it only amounts to 0.5% of the total revenue of the industry.
Bisignani says, “The industry remains fragile”. The reasons for this fragility are dubbed as being a rather slow recovery from the dipped profits that were adversely affected by recession and the recent stalling of flights on account of the Icelandic ashes. All in all, the debt situation that Europe had been brought to has disappeared even before you could say the word ‘shoo’.
