‘94 Shapes Up as Profitable for Airlines
- Share via
MEXICO CITY — A trade group representing the world’s major airlines said Monday that the industry is poised to start making money again after four years of losses.
Pierre Jeanniot, director general of the International Air Transport Assn., however, told the annual meeting of the organization that a profit of $1 billion expected for 1994 is no cause for celebration.
“This would represent a new beginning and give (airlines some) breathing space, as the painful process of restructuring continues,” Jeanniot said.
Representatives of the organization’s 222 member airlines, which make up 95% of the world’s scheduled air carriers, attended the gathering in Mexico City.
Jeanniot said net losses on international scheduled flights totaled $4.1 billion in 1993 alone, but total traffic was up 9.3% in the first eight months of this year.
The industry, he said, is a long way from regaining a secure financial footing after net losses by member carriers of $15.6 billion on international scheduled services between 1990 and 1993.
The years of losses have left airlines strapped for cash to modernize their fleets, Jeanniot said.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
