Global airline profit forecast revised upwards

The International Air Transport Association raised its 2012 global airline profit forecast 37% as carriers slow capacity growth to cope with higher fuel prices and waning travel demand.

Carriers may post $4.1bn (€3.2bn) of profits this year with a margin of 0.6%, the group — whose members account for 84% of global airline traffic — said in a statement. That compares with a June forecast for gains of $3bn and a profit of $8.4bn in 2011.

The group raised its forecast as airlines reported improved earnings in the second quarter, it said. Delta Airlines and US Airways Group beat analysts’ profit estimates, while Singapore Airlines posted its first increase in net income in seven quarters.