Airlines' revenue boom coming to an end: IATA

Geneva, Dec 13 (UNI) Booming demand for air travel in India, China and elsewhere in Asia will bring profits of 1.2 billion dollars to airlines next year, according to the International Air Transport Association (IATA).

''The year 2006 was a turning point,'' said its director general Giovanni Bisignani. ''After six years, 2007 promises some black figures.'' Airline industry in Europe is expected to have biggest profits - 1.5 billion dollars - while Asia will show a profit of 1.2 billion dollars. The United States will follow with 200 million dollars of profits, said Mr Bisignani.

The Middle East and Latin America will show profits of 100 million dollars but Africa will lose some half-a-billion dollars.

''The air transport industry profit of 2.5 billion dollars is peanuts. It's a margin of 0.5 per cent on 450 billion dollars of revenues,'' he said.

Significantly, the revenue cycle has peaked. ''We forecast revenue growth to fall from 8 per cent in 2006 to 4.5 per cent,'' said Mr Bisignani.

The global airline industry is recovering from 41 billion dollars of losses piled up after a dip in air travel following the 9/11 terror strikes in the United States. And the booming revenue conditions of past two to three years are coming to an end.

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