Profits predicted for North American airlines

The financial outlook this year for airlines has worsened just in the past few months, though carriers in North America, including Delta Air Lines, still expect profits.

The International Air Transport Association, a group representing airlines around the world, said it now expects the global air transport industry to lose $4.7 billion this year, wider than the $2.5 billion loss it forecast in December. But North American carriers are expected to post a combined $100 million profit as they cut capacity and benefit from lower fuel prices. The airline association also expects industry revenues to fall 12 percent, which is worse than the 7 percent drop after the Sept. 11, 2001, terrorist attacks.

Delta said it still expects to lose money in the first quarter but report a profit for the full year. The Atlanta-based airline this month also announced plans to reduce its international flight capacity by another 10 percent starting in September, mainly in its weak Atlantic and Pacific networks, along with “modest” domestic cuts.

In its international network, Delta will cut trans-Atlantic capacity by 11 to 13 percent this winter compared with a year earlier and trans-Pacific capacity by 12 to 14 percent by leaving low-performing markets —- shifting some to seasonal service and using smaller aircraft or operating fewer flights on other routes. It still plans to increase Latin American capacity slightly in the fourth quarter.

AIR TRAVEL OUTLOOK

The International Air Transport Association forecasts a $4.7 billion loss for the global airline industry in 2009. Here’s the breakdown of the forecast for airlines by region:

Asia Pacific: $1.7 billion loss

North America: $100 million profit

Europe: $1 billion loss

Latin America: $600 million loss

Africa: $600 million loss

Middle East: $900 million loss