But $11bn loss for 2009 likely
The global financial performance of airlines showed signs of improvement between July and September, the International Air Transport Association (IATA) said.
But the rate of improvement did not extend to Europe, which lagged behind other regions.
Global airline equity prices are 15% up on the start of the year and profits rose as well, IATA said.
A sample of 75 major airlines reported a net profit of $700m for Q3 2009, compared to a net loss of $3.4bn in Q3 2008.
European airlines did not see any improvement, however, reporting a net post-tax profit in the third quarter of 2009 of only $563m, compared to $1212m for Q3 2008.
IATA said there is still a lot of ground to re-cover with airlines only valued at 50% of their 2007 high.
A net loss of $11bn for 2009 looks likely, the association said.
As airlines cut passenger capacity throughout 2008 and 2009, passenger load factors have increased, leading to a rise in fares in recent months.
To improve passenger load factors, airlines are not using their full fleets, said IATA, with aircraft utilisation down 6%.
"There was a rise in average fares in August, as high load factors meant low fare categories did not need to be held open as long," said IATA.
Passenger yields remain low, due to intense competition, especially on premium fares.
IATA said: " What is not clear at present is the extent to which there has been a structural reduction in premium fares - because business travellers are buying economy tickets or corporate buyers have improved their bargaining postition."
www.iata.org