Airlines Post First Profit in 5 Years: $1.8 Billion in 1994

World airlines in 1994 made their first profit on global routes in five years and look headed for an even better result in 1995, the International Air Traffic Assn. reported Wednesday.

The IATA said the net overall profit made by its 230 member airlines was $1.8 billion, contrasted with a $4.1-billion loss in 1993, and it predicted they could make a net profit of $5.5 billion this year.

The figures, announced in a speech in New York by IATA Director General Pierre Jeanniot and released in Geneva, mark a clear recovery after four years of losses that totaled $15.6 billion between 1990 and 1993.

The 1994 profit, which reflects an operating surplus $500 million higher than earlier estimates and reduced interest costs on loans, is almost double the positive balance of $1 billion the IATA said in November it expected for the year.

But Jeanniot and IATA officials in Geneva warned that even combined with the expected boost this year, the long-troubled industry will still be well below an acceptable profit of 7% on scheduled international services.

The airlines say they need to attain this level to enable them to make necessary investments in new aircraft and technology and to update equipment and meet rising costs.