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The International Air Transport Association trimmed its forecast for airlines’ net profits this year due to a surge in fuel costs, which is being exacerbated by the political unrest in the Middle East.

IATA, which represents some 230 airlines comprising 93% of scheduled international traffic, said Wednesday that it now expects carriers’ combined 2011 net profit of $8.6 billion, down from a previous forecast of $9.1 billion, on revenues of $594 billion.

The industry earned $16 billion in net profits last year as it rebounded from a withering downturn in the global economy that saw dozens of airlines world-wide go out of business.

source: wsj.com

Tim Jeans, former commercial director at Ryanair, said the golden age for ”low, low fares” is coming to an end.

He blamed escalating fuel costs, increased ‘Air Passenger Duty’ and so-called green programmes like the ‘Emissions Trading Scheme’, for impacting on airline profits.

Talking about whether the ”golden era of air trave’l’ was over, Mr Jeans said: ”The only thing that can happen is fares will go up and passengers go down. The vicious circle of decline in our industry will start.”

source: dailymail.co.uk

Air France and Delta are believed to be interested in making a bid for Sir Richard Branson’s 51 per cent stake in Virgin Atlantic.

The stake is valued by analysts at anywhere between £500m and £1bn with Singapore Airlines owning the remaining 49 per cent stake, which it bought for £600m in 1999.

In November, Sir Richard hired Deutsche Bank to examine Virgin’s strategic options.

He said at the time he was being forced to review the airline’s position in the wake of British Airways’ merger with Iberia and their transatlantic tie-up with American Airlines.

source: skyport-heathrow.co.uk

Thanks to the new online “‘City Ratings’” application, Lufthansa customers can now rate the airline’s worldwide destinations, share their personal recommendations with other passengers or find inspiration for their next holiday based on other people’s experiences, ideas and travel tips.

The new application, which can be accessed via www.lufthansa.com, will enable users to share their first-hand experiences and impressions – a valuable source of information for travellers before they embark on their journey.

source: di-ve.com

China plans to build at least 45 new airports in the next five years to serve booming travel, the top industry regulator said Thursday.

The plans call for spending 1.5 trillion yuan ($230 billion) to expand air travel, said Li Jiaxiang, administrator of the Civil Aviation Administration of China.

Some 130 of China’s 175 existing airports lost money last year but Beijing will support them to boost local economic growth, Li said at a news conference.

source: Bloomberg

Ryanair is partnering with publisher Ink to create customised ads on home-printed boarding passes, which target fliers based on their travelling routes and location.

Ink, the in-flight magazine publisher, is developing a system that will customise advertising for travellers, according to their route and demographic data.

The ads will be printed on Ryanair boarding cards and will target destination and departure points.

s0urce: marketingmagazine.co.uk

American Airlines recently established an AAdvantage Facebook page, which currently is handing out airline miles in exchange for Facebook “likes.”

After clicking on the like button, you can embark on the Mystery Miles Journey.

Enter your AAdvantage number ” or importantly, enroll in the loyalty program if you are not already a member ” and the airline will deposit 100 to 100,000 miles in your account as part of the promotion, which runs through the end of March.

source: tnooz.com

Budget airline easyJet has launched its first blog and online community in a bid to reach out to existing and new customers.

James Lee, marketing manager UK at easyJet, said: “‘Social platforms are part of everyday life for many of the people who fly with us. It is important that we participate in these platforms and make it as easy as possible for our passengers to engage with us, wherever they are online.'”

source: thedrum.co.uk

Online travel spend in January soared by 31% over the same peak booking month last year.

The average basket value of holidays booked was £886, the highest recorded by the ‘IMRG Capgemini e-Retail Sales Index’ since its launch in December 2008.

The year-on-year increase of 31% and represented a “‘massive’” 173% rise on December 2010’s online sales. Despite limited disposable income available, it appears that rather than blitzing the high street January sales, shoppers opted instead for seasonal discounts on furniture and early bookings of annual holidays, according to the research company.

source: travelweekly.co.uk

Delta Airlines just announced that, effective last month, miles accrued in its ‘SkyMiles’ frequent flyer program will not expire, regardless of account activity.

Delta’s move underscores the major shift that has occurred among frequent flyer programs in recent years. The airlines’ main objective for their programs is no longer to promote loyalty; it’s to generate profits.

source: Chicago Tribune