Asia-Pacific airlines drive IATA's increased airline profit forecast

IATA, the airlines' global trade association, erased its December forecast and now envisions airlines making more than $2 billion in additional profits at a modestly higher profit margin in 2013. IATA now forecasts that airlines will earn $10.6 billion in profits at a profit margin of 1.6%, compared with $8.4 billion at a 1.3% profit margin in the forecast released in December for 2013. While individual airlines can operate with a substantial profit margin, often bolstered by ancillary revenue, it is a testament to the tough nature of the business that IATA's forecast is for just a 1.6% after-tax profit margin for airlines globally. That, of course, includes plenty of airlines that are piling up losses. Increased passenger demand and growth in the cargo industry are largely responsibile for the boost, IATA states. “Industry profits are taking a small step in the right direction," says Tony Tyler, IATA’s Director General and CEO. "Agains