State of Global Airline Industry 2012

Global airline industry has reported strong performance in February, according to statistics released by the International Air Transport Association (IATA) Tuesday.

It recorded an 8.6 percent improvement in passenger demand and a 5.2 percent rise in cargo demand compared to the same month last year.

Several factors contributed to the favorable result, including weaker traffic during the unrest in middle-east a year ago and the Carnival in Brazil in February, a month earlier than in 2011.

Despite relatively strong performance in February, IATA’s projection for industry outlook remains negative.

“The outlook is fragile. Improvements in business confidence slowed in February. This will limit the potential for business class travel growth and it implies that an uptick for cargo is not imminent,” said Tony Tyler, IATA’s Director General and CEO.

Rising fuel costs is another concern for the industry, as it could further erode the margin of airlines which is already recorded at a very low level, according to the agency.

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