Why U.S. airline profits will beat carrier profits in the rest of the world
Skift Take
Passenger demand growth in North America is projected to be tepid, at 1.3% in 2012, but tight controls on capacity have improved the profit picture.
IATA's revised global aviation outlook forecasts that airlines in North America will produce the largest improvement in profits in 2012 of any region of the world.
Carriers in North America are expected to see profits rise 46.1% to $1.9 billion in 2012, IATA says, and that's a half a billion dollar increase from the previous IATA forecast in June.
IATA attributes the improvement in large part to "tight capacity management," which means that passenger demand outpaced growth in available airline seats.
[caption id="attachment_26043" align="alignright" width="385"] Photo courtesy Delta Air Lines[/caption]
"Over the first eight months of the year, passenger demand grew by 1.3% while capacity expanded by just 0.2%," IATA says of North America. "As
