News

Early reports from some airlines suggest that the industry's financial performance continued to improve in the fourth quarter of last year, the industry association IATA said on Wednesday.

A strong upturn in air travel and freight demand at the end of the year, as capacity cuts remain in place, is offsetting the rise in fuel prices which markets now expect to moderate, the International Air Transport Association said.

But revenues in both business and economy classes are still sharply lower than in early 2008, it said.

"There is still some way to go -- perhaps several years -- before the revenue environment can be described as having 'recovered'," IATA said.

IATA has forecast that airlines will lose USD$5.6 billion this year after USD$11 billion in 2009.