IATA Reports Improved Airline Profitability

The International Air Transport Association (IATA) announced a $5 billion projected profitability for airlines in 2007 at its annual general meeting in Vancouver. In his keynote State of the Industry address, Giovanni Bisignani, IATA director general and CEO, said the agency expects airlines to make $5 billion this year.

Mr. Bisignani outlined several industry priorities, including safety, saying that 2006 was the safest year ever and that the IATA Operational Safety Audit-a condition of IATA membership-is crucial to efforts to make air travel even safer. He said security depends on having global standards and cooperation rather than the uncoordinated condition that is today’s reality.

He also said liberalization is another important issue and that the recent U.S.-EU “Open Skies” agreement was an important step in right direction, but that there’s a need for more fundamental changes.

Separately, Mr. Bisignani pointed out that the air transport industry has to aim for a “zero emissions” future. He said there are several challenges for the industry to meet in this arena.