Even as the world airlines' financial performance improved in the third quarter of this year, the carriers across the world are still likely to post a combined net loss of $11 billion in 2009, according to official statistics.

The International Air Transport Association (Iata) yesterday said airlines raised $2.5 billion (Dh9.18bn) in cash since late November, mostly in debt.

The Middle East carriers, meanwhile, are expected to see an "improved outlook", from a loss of $1.5bn to a loss of $500 million, Iata had said recently. The region recorded the highest growth of 14.3 per cent in passenger demand in October 2009 over the same month a year earlier.

And the Middle East carriers also posted the highest growth of 9.9 per cent in the year-to-date passenger traffic in 2009 over the same period last year – making it the only region in the whole world to record positive growth while all others recorded negative growth, according to the latest Iata statistics.

"The Middle East is an oasis of some good news for this industry. This is the only region that is growing. Over the first eight months of the year passenger demand expanded by eight per cent, outstripped by a capacity increase of 13 per cent," said Iata's Chief Executive and Director-General Giovanni Bisignani at the 42nd annual general meeting of the Arab Air Carriers Organisation in Jeddah, Saudi Arabia in October.

He said: "But growth has not yet translated into profitability. Growth without profit is not sustainable."

Meanwhile, a sample of 75 major airlines reported a combined net profit of $700m in the third quarter compared with a $3.4bn loss in the third quarter of 2008, said Iata in its Airlines Financial Monitor report for October-November 2009. It has also forecast that the sector will lose $4bn on a net basis in 2010.

It said jet fuel price rested at much lower levels in this year's third quarter compared to the same quarter in 2008, but has been on a "rising trend" this year and now above $80 per barrel.

Air transport demand, however, is back to year earlier levels, but only half of 2008 traffic decline recovered so far, said Iata, adding that airlines continued to cut capacity through year, raising load factors back to pre-recession levels.

Iata's international scheduled traffic results for October 2009 showed improving conditions, with passenger demand up 0.5 per cent compared to October last year, as demand for international cargo increased to 0.5 per cent below previous year levels.

Iata said in the financial report that airline equity prices recovered the ground they lost in October to stand 15 per cent up on the start of the year. "However, that only values world airlines at 50 per cent of their 2007 highs," it said.

Also, deliveries of new aircraft are back over 100 per month as fleet expanded more than two per cent this year, said the Iata report.

"In spite of airlines deferring aircraft deliveries as they seek to reduce capex and preserve cash, the number of new aircraft delivered in October remained at the 100 level. This compares with a net 40 aircraft being taken out of service and put into storage," said Iata. "Even if the storage figures underestimate some of the aircraft being parked it still seems the aircraft fleet is expanding, despite continuing efforts to cut seat and freight ton kilometre capacity."

Finally, average premium fares of airlines across the world were down this quarter over 25 per cent in the second quarter, according to the Iata report.

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