The International Air Transport Association projected that the industry will pull in $6.9 billion worth of profits in 2011, well above its June projections of $4 billion. People continue to fly despite the fact that discretionary incomes have been pinched and consumer confidence is weak, the association said.
Still, the events of the past year and the weak economy have taken their toll. In 2010, the industry pulled in almost $16 billion in profits, and as recently as March the association had predicted profits of $8.6 billion, the New York Times noted. U.S. airline profits are projected to hit $1.5 billion, down from $4.1 billion in 2010.
In 2012, global profits could fall to $4.9 billion, the group said.
Last week, many airlines reported strong bookings and projected growing revenue in the next year, despite high oil prices and consumer weakness. As US Airways President Scott Kirby said “�If I wasn�t reading the Wall Street Journal everyday and listening to CNBC when I�m driving to work in the morning, I would think that we were in the middle of a pretty strong economy.”
Airlines traded higher on Tuesday, with US Airways (LCC) rising 3.1%
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