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Airlines expect profits to jump to record high

Airlines at Denver International Airport. North American airlines are expected to make the biggest profit next year — $8.3 billion, up from $5.8 billion this year.
Airlines at Denver International Airport. North American airlines are expected to make the biggest profit next year — $8.3 billion, up from $5.8 billion this year.Credit: EMMANUEL DUNAND/AFP/Getty Images

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The global airline industry expects its profits to jump to a record high next year, helped by falling jet fuel prices, rising travel demand and cost-cutting.

The International Air Transport Association said Thursday it forecasts a profit of $19.7 billion — well above the $12.9 billion expected this year and the $7.4 billion made in 2012.

But the Geneva-based group, which represents 240 airlines, or 84 percent of total air traffic, noted margins are dropping. Next year’s profit would come from projected revenues of $743 billion. By contrast, 2010’s $19.2 billion profit was made on revenues of just $579 billion.

Tony Tyler, director-general and CEO of IATA, said that the profit would amount to a little less than $6 per passenger.

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