Crisis Threatens Airline Profits

 

BEIJING, China – The benefits of the airlines will drop this year at $3 million due to the crisis in Europe, according to the International Air Transport Association (IATA), currently holding its general assembly in Beijing.

It will be the second consecutive fall to record industry profits after that in 2011 were 7.900 million and 15.800 million in 2010, according to IATA.

The crisis in Europe and rising fuel prices as a result of rising oil prices are the main reasons for this forecast, said the chairman of the IATA, Tony Tyler, during the opening of the general assembly involving more than 600 delegates from 242 airlines around the world.

Passenger traffic will continue to increase, and it is expected that by 2012, the total number of seats reserved reach 2.966 million; 2.835 million compared to 2011.

The Asia-Pacific, with China leading the way, continues to lead the growth in passenger traffic. And in 2012, they will bring much benefit for airlines, with some two billion dollars.

United States also improves the prospects, and it is estimated that airlines recorded profits of 1.400 billion of that market, according to the source. However in Europe, in the words of Tyler, is the “greatest risk” to the airlines.

 

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