The International Air Transport Association (IATA) has halved its forecast for 2010 losses to$2.8bn. The body said that demand recovery at the end of 2009, following into 2010, caused the revised forecast (originally $5.6bn in 2009). IATA also cuts its estimated 2009 loss from $11bn to $9.4bn driven by emerging markets such as Asia-Pacific and Latin America. “We are seeing a definite two-speed industry. Asia and Latin America are driving the recovery. The weakest international markets are North Atlantic and intra-Europe which have continuously contracted since mid-2008,” said Giovanni Bisignani, director general and CEO. According to IATA, Asia-Pacific carriers will turn 2009’s $2.7bn loss to a $900m profit; Latin American carriers should post a $800m profit for the second consecutive year; European carriers will post the largest regional loss at $2.2bn with demand growth of 4.2 per cent; North American carriers will report the second largest loss of $1.8bn, but demand should rise 6.2 per cent. The Middle East should see growth of 15.2 per cent in 2010, but may report losses of $400m; and Africa is thought to post a $100m loss for 2010, while demand is expected to improve by 7.4 per cent.

A British Airways (BA) worker has been charged with three counts of intended terrorism including arranging an inflight suicide bombing, media reports suggest. Bangladesh-born Rajib Karim, 30, was employed as a BA computer technician and had tried to become a member of stand-in cabin crew during the proposed strike. It is alleged that Karim lived in Britain and sought employment with BA as a means to carry out the planned attack. It is also thought that the worker divulged important information to his associates, including airport security protocol.

IATA raised its predictions for the average price of oil to $79 per barrel compared to the previous forecast of $75, and increase of $17 per barrel on 2009’s $62 average. Collectively the industry is expected to foot a bill of $132bn, up $19bn from 2009. This represents an operating cost of 26 per cent, up two per cent. However revenues are expected to rise $44bn from the previous forecast to $522bn, a $43bn improvement on 2009.

Japan has opened its newest airport, a ¥22bn ($220m) project situated in the Ibaraki region, Japan, about 50 miles from Toyko. The airport, Japan’s 98th, has been deemed wasteful by some, not least because it will operate only one flight per day. However, officials say it will become an important hub, especially for low-cost carriers. The airport currently services flights from Japan to South Korea and will start flights to Kobe in April.

Passenger demand is expected to grow 5.6 per cent in 2010 compared to a fall of 2.9 per cent in 2009 and a previously forecasted 2010 growth of 4.5 per cent. Cargo demand is predicted to increase by 12 per cent compared to last year’s 11.1 per cent drop and a previous 2010 forecast of seven per cent growth. IATA also predicts that passenger yields will increase by two per cent and cargo yields by 3.1 per cent. “This is a considerable improvement from the precipitous 14 per cent fall experienced by both in 2009,” it said in a statement.

Based on preliminary, unaudited figures, DVB Bank posted solid consolidated net income (after taxes) of EUR76.1m in 2009, a 27.7 per cent decline from the 2008 figure of EUR105.2m. Net interest income was up slightly, to EUR194.3m – the bank said this was a positive development, given the difficult market environment in 2009. In 2009 DVB originated new business in large-sized structured transport finance exposures on a selective basis. New business volume amounted to EUR3bn. Interest rate margins for new transactions were able to include the clearly higher funding costs prevailing throughout 2009: hence, the interest margin on new business rose to an average of 343 basis points (up 157 year-on-year), thus also ensuring an adequate risk/return relationship.
 

Air China said it will raise about CNY6.5bn ($952m) via an issue of new shares, becoming the second Chinese carrier to announce fundraising plans this week. Air China's announcement on Thursday (March 11) came three days after rival China Southern Airlines said it would issue $1.6bn to repay debt. Air China and China Southern plan to sell their new shares privately to a handful of investors, including their state-owned parents.

Based on preliminary, unaudited figures, DVB Bank posted solid consolidated net income (after taxes) of EUR76.1m in 2009, a 27.7 per cent decline from the 2008 figure of EUR105.2m. Net interest income was up slightly, to EUR194.3m – the bank said this was a positive development, given the difficult market environment in 2009. In 2009 DVB originated new business in large-sized structured transport finance exposures on a selective basis. New business volume amounted to EUR3bn. Interest rate margins for new transactions were able to include the clearly higher funding costs prevailing throughout 2009: hence, the interest margin on new business rose to an average of 343 basis points (up 157 year-on-year), thus also ensuring an adequate risk/return relationship.
 

Bombardier, the world's third-largest airframer, has announced that due to the current unfavourable conditions in the debt capital markets, it has decided to withdraw its proposed institutional private placement of new senior notes and therefore, it has also terminated its previously announced cash tender offer for its 6.75 per cent notes due 2012, 6.30 per cent notes due 2014 and floating rate senior notes due 2013. UBS has lowered its rating on the company's stock to "neutral" from "buy".
 

Airbus parent company EADS reported that 2009 revenues stood at EUR42.8bn, supported by record commercial aircraft deliveries at Airbus (498 units compared to 483 in 2008). EADS reported a net loss of EUR763m for 2009, down from a profit of EUR1.57bn last year. A EUR1.8bn charge on the delayed and over-budget A400M and EUR240m of provisions for the A380 both weighed on the result, according to the company. Revenue slipped one per cent to EUR42.8bn. In addition, revenues at Astrium (an EADS division) grew by 12 per cent.