IATA WARNS SHRINKING PROFITS FOR MIDDLE EAST CARRIERS

The International Air Transport Association (IATA) stated last week that Middle East carriers “are expected to see 2010 profits of $700m shrink to $400m in 2011,” as the fragile global aviation industry continues to flounder. Even so, Middle East airlines will continue to grow much faster than western airlines, says IATA: “[The Middle East] will be the fastest growing region in both 2010 and 2011. But the pace of demand growth will halve from 21.5% in 2010 to 10.5% in 2011.” European airlines were described as playing the “industry laggard” to airlines such as Etihad and Emirates, with their profits