KEY POINTS:
The airline industry is expected to return to profitability this year for the first time since 2001, industry association IATA has reported.
Latest International Air Transport Association estimates show the industry will generate US$5 billion in profits.
In the past six years, the global airline industry has notched up US$42 billion ($55 billion) of losses. Air New Zealand has been better positioned than many to take advantage of the upswing. It has already made major investments to refit its planes and has booked the spending on eight new Boeing 787s to update its fleet.
The airline's shares have risen about 180 per cent, from $1.08 in August last year to Friday's close of $3.05.
IATA chairman Giovanni Bisignani said: "The industry has changed tremendously in five years." Labour productivity was up 56 per cent, distribution costs were down 13 per cent, non-fuel related unit costs dropped 15 per cent and passenger loads were at record highs.
"In 2002, airlines needed an oil price of less than US$20 per barrel to break even. Today we are profitable at nearly US$70 per barrel," he said.
But the turnaround for the sector was far from complete, he warned.
