IATA downgrade airline profit forecast over Eurozone crisis
13.12.11
Airline group the International Air Transport Association (IATA) has downgraded its profit forecast for the industry for next year in light of the Eurozone crisis. It has reduced its 2012 profit forecast from $4.9 billion to $3.5 billion, warning that the crisis ‘puts severe downside risk on the 2012 outlook’. And if the Eurozone crisis evolves into a full-blown banking crises and European recession, IATA estimates that the global aviation industry could suffer losses exceeding $8 billion in 2012.
Tony Tyler, IATA’s director general and CEO, said: ‘The biggest risk facing airline profitability over the next year is the economic turmoil that would result from a failure of Governments to resolve the Eurozone sovereign debt crisis. Such an outcome could lead to losses of over $8 billion - the largest since the 2008 financial crisis.'
He said European airlines are by far in the most challenging position due to higher passenger taxes and weak home market economies. This is despite Europe being one of the fastest growing regions in terms of air traffic this year.
To book gatwick airport hotels or gatwick airport parking at the lowest price, click on these links to two great gatwick parking and gatwick hotels price comparison pages.
