AEA member airlines expect to post a €1.5 billion profit for 2011

The Assn. of European Airlines (AEA) said its member airlines expect to post a collective €1.5 billion ($1.9 billion) EBIT profit in 2011, up from €0.5 billion in 2010.

Preliminary figures covering 31 of AEA’s 35 member airlines show passengers carried increased 7.1% on 2010 to 363 million and RPKs rose 8%. Capacity (ASKs) increased 8.9% and average load factor slipped by 0.6 of a percentage point to 77.3%.

“There is much to encourage us in the 2011 figures. In times of austerity and financial turmoil, European citizens continue to vote for air travel in unprecedented numbers,” said AEA secretary general Ulrich Schulte-Strathaus.

The 2010 baseline was depressed by several events, including the closure of European airspace due to the risk of volcanic ash contamination and harsh winter conditions at the end of the year. After adjusting for the exceptional events of 2010, underlying RPK growth was 6%.

“Unfortunately we cannot, and do not, expect this buoyancy to last,” Schulte-Strathaus said. “Air freight—a key barometer for the industry—has been slowing since May and we began to see passenger traffic cool down in the final quarter of 2011. Meanwhile, fuel costs remain cripplingly high and aviation continues to be a target for additional regulatory burdens, further impacting financial stability.”