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Airlines to increase profits in 2013

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Airline profits improve to $8.4 billion in 2013, mainly due to cost cuts and restructuring measures taken to compensate for stalling economic growth, the global industry’s trade group International Air Transport Association forecasts, according to the Associated Press.
The 2013 results would still be below the $8.8 billion earned in 2011 and $15.8 billion in 2010. The net profit margin, at 1 percent, would also be well below the 7 to 8 percent officials say is needed to recover capital costs, AP reported.
For 2012, the industry anticipates net profits of $6.7 billion based on strong second and third quarters – particularly for larger carriers with bigger economies of scale – despite high fuel prices and weaker demand.
“Airlines have adjusted to this difficult environment through improving efficiency and restructuring,” Tony Tyler, chief executive of the Geneva-based global trade group, said to AP.

 

The editor of the Traveling Reporter works as a business news editor, and is a frequent traveler. When not doing any of that, he spends time on his boat and tries to figure out where to travel next. Two of his top destinations are the Philippines and San Francisco. Email Erik! Follow the Traveling Reporter at Stumbleupon, Tumblr, Chime In, Pinterest, Google+, Weibo, Storify, Facebook, Traveldudes, Myspace.