IATA downgrades its 2011 outlook for the airline industry

The International Air Transport Association (IATA) has downgraded its airline industry outlook for 2011 to $8.6bn (£5.3bn) from the $9.1bn it estimated in December 2010.

This is a 46 per cent fall in net profits compared to the $16bn (revised from $15.1bn) earned by the industry in 2010, and on expected industry revenues of $594bn, the $8.6bn 2011 profit equates to a net profit margin of 1.4 per cent.