Asia-Pacific airlines outperformed those in other regions in terms of profitability in the last quarter of last year, with benchmark airlines registering a rise in net profit of nearly 200%.
A total of 23 Asia-Pacific airlines made US$1.73 billion compared with $590 million in the same period of 2011, according to the a financial monitor report released this week by the International Air Transport Association (IATA).
The sharp improvement came as they carried a large part of the growth in passenger and cargo volumes, said the Geneva-based trade group whose 240 member airlines carry 84% of all passengers and cargo.
North American airlines, which showed improved profitability earlier in 2012, posted a loss of $53 million in the final quarter, against a profit of $331 million a year earlier, as they were hit by Hurricane Sandy in October.
European airlines continue to face difficult economic conditions, but their fourth-quarter losses of $502 million were slightly smaller than the previous year's level of $661 million.
In its revised outlook issued last month, IATA expected Asian-Pacific airlines to deliver the largest absolute contribution to global industry performance with an expected net profit of $4.2 billion in 2013, up from its previous projection of $3.2 billion.
Asian carriers comprise about 40% of the air cargo market and will be the biggest beneficiaries of the expected upturn in demand.
Regional carriers are expected to see average demand growth of 4.9%, slightly outpaced by a 5% capacity expansion.
Globally, IATA now expects airlines to produce a combined net profit of $10.6 billion, up from the previously projected $8.4 billion, with a net post-tax profit margin of 1.6%, up from 1.3% envisaged earlier.
IATA expected the industry to make a profit of $6.7 billion for 2012.
Upward revision for 2013 came with a backdrop of optimism for global economic prospects, strong passenger demand growing cargo markets.