Airlines fly out of the economic crisis

After a few lean years, it seems that commercial air carriers from the United States, Europe and Asia,  are back in the green again. According to latest press releases, lots of companies are back in the profit zone thanks to the growing demand in passengers and freight transportation. Not only that, but travelers in first class have also returned with their need to spend bigger than ever. Early in October, US carriers like American Airlines, Delta, United and Continental have posted a great net earnings for this year. The situation was similar both in Europe and Asia.

After the effects of the global financial crisis materialized, airlines had to come up with drastic cost reduction measures to ensure they will survive. Now that the crisis is almost gone and passenger demand is high, carriers have a reason to increase prices. Nevertheless British Airways, Iberia, Lufthansa and Alitalia have all shown positive revenue for the first nine months of 2010.

The International Air Transport Association (IATA) though failed to share the optimism as it warned its members to stay put. According to IATA experts, future stability in the airline branch will be very dependant on how Asian and especially Chinese companies cope with situations like the recession we just passed. And to make things worst, FBE Aerospace analyst Saj Ahmad warned European carriers to be extremely vigilant with their business plans because they are the first to fall in a future economic crisis.

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