[Karl]

$this->bbcode_second_pass_quote('', 'I')ATA halved its loss forecast for 2006 to $2.2 billion from a previous forecast of $4.3 billion and now expects the world's airlines to earn $7.2 billion in 2007, increased from earlier estimates of a $6 billion profit next year. The improvement is being driven by events in North America and particularly the US, where a 3% reduction in domestic capacity coupled with strong traffic is producing double-digit unit revenue growth.

IATA now expects US carriers to lose $5.4 billion this year, down from $10.4 billion in 2005. "Restructuring in the US industry has produced some impressive results, including a 34% increase in productivity," DG and CEO Giovanni Bisignani stated. Nonetheless, he said that at 33% of operating costs, "US labor costs are higher than their competitors in both Europe and Asia." Asia/Pacific carriers are forecast to earn $2 billion this year, reduced from $2.9 billion last year, while European airlines will see profitability decrease to $1.4 billion from $1.8 billion. The revised forecasts are based on crude oil prices of $57 per barrel (Brent) in 2006 and $52 in 2007

[Andy]

The aviation industry, of all the industries has their head buried deepest in the sand regarding fuel availability. That is really ironic given that they are the most exposed industry to liquid fuels crises. All the surface transport modes have feasible alternative fuels, possibly even electricity.

They really think that the present growth rate can continue for more than another 4 to 5 years? We will see who is right I guess. It should be interesting.

[pigleg]

Apparently at below supersonic speeds the propeller has an efficiency advantage (up to 30%) over the jet engine - so no doubt we'll see more turboprops. I didn't realize that turboprop was actually a jet engine with a propeller, I thought it was a piston engine. Also found Propfan which was a reaction to the last energy crisis, but was discontinued when oil prices fell again. Maybe that'll come back too.

[SoothSayer]

I wonder if the UK still has the plans for this ...

http://en.wikipedia.org/wiki/Bristol_Britannia

.... it could be the start of a whole new (?) industry!

[I flew from Hong Kong to the UK on one as a child]

edit: sp