Asian airline profits forecast to fall in 2007

Sydney: Asian airlines are forecast to make 1.2 bln usd in aggregate profits in 2007, down from an estimated 1.7 bln usd for 2006 due to increased competition, more capacity and new entrants, the International Air Transport Association (IATA) said.
IATA said international passenger traffic in Asia is projected to grow at an average annual rate of 5.7 pct between 2006 and 2010.
It said international freight in Asia Pacific is expected to lead global freight growth with an average annual growth rate (AAGR) of 6.0 pct over the same period.
The organization said international passenger traffic growth in the Asia Pacific region is being boosted by strong gross domestic product (GDP) growth, along with significant new capacity and new routes.
It said the forecast growth reflects the strength of trade flows, economic growth and liberalisation, particularly in China and India.
Over the four-year period to 2010, Pakistan is forecast to have the fastest AAGR at 8.2 pct, just beating China with 8.1 pct, and India with 7.9 pct.
IATA said seven of the top 10 freight markets fall within the Asia Pacific region with China's freight AAGR forecast at 11.6 pct from 2006 to 2010, followed by Pakistan at 8.8 pct, Korea 8.2 pct, India 8.2 pct, Sri Lanka 7.4 pct, Thailand 6.3 pct and Indonesia 5.8 pct.
03/01/07 AFX News Limited/Forbes, US

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