The International Air Transport Association expects airlines to post a global profit of USD

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2.5 billion this year compared with the previous forecast released in March of USD 2.8 billion loss.

Industry revenues, meanwhile, are forecast to be USD 545 billion in 2010 which is higher than the USD 483 billion in 2009, but still below the USD 564 billion achieved in 2008.

"The global economy is recovering from the depths of the financial crisis much more quickly than could have been anticipated. Airlines are benefiting from a strong traffic rebound that is pushing the industry into the black," IATA Director-General and Chief Executive Officer Giovanni Bisignani said.

"We thought that it would take at least three years to recover the USD 81 billion (14.3 per cent) drop in revenues in 2009. But the USD 62 billion top line improvement this year puts us about 75 per cent on the way to pre-crisis levels," he said in a statement yesterday.

He said the USD 2.5 billion profit came with some important health warnings.

"First, this represents a net margin of just 0.5 per cent, which is a long way from sustainable profitability. Second, a major part of the global industry is still posting big losses.

"A stagnating economy, strikes, natural disasters, and a currency crisis have left European carries struggling with an anticipated USD 2.8 billion loss," he added