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Wed 13 Jan 2010 04:00 AM

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Will recovery happen this year?

If expert opinion is to be believed, then the answer is, yes.

If expert opinion is to be believed, then the answer is, yes.

Industry analysts are predicting that the Middle East aviation sector in particular, is likely to recover this year as the passenger traffic and cargo revenues recorded significant growth in the second half of 2009.

These growth figures have resulted in losses of Middle East airlines shrinking to US$300 million this year from a massive $1.2 billion in 2009, according to the latest reports from the International Air Transport Association.

Despite the growth in passenger traffic however, these significant losses are due to the drop in yield against the backdrop of the fall in fares.

But, by next year the market forces will start operating more aggressively, say analysts, and the industry will be able to adjust to a higher level of yield.

Sarah Cowell is the editor of Aviation Business.

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