The International Air Transport Association (IATA) has reduced its 2010 loss forecast by half after it was reported that the sector was recovering quicker than anticipated.
An upturn in passenger demand seen by year-end gains continuing into 2010 has helped the association, which represents 230 carriers, to halve predicted losses to US$2.8bn (£1.8bn, €2bn).
Demand, which decreased by 2.9 per cent during 2009, is now poised to increase by 5.6 per cent this year, with Asia-Pacific and Latin America helping to drive the recovery.
IATA director general and chief executive, Giovanni Bisignani, said: "We are seeing a definite two-speed industry. Asia and Latin America are driving the recovery.
"The weakest international markets are North Atlantic and intra-Europe which have continuously contracted since mid-2008."
