Above the clouds waving less profits

The international association of airlines, IATA has lowered earnings expectations the sector once again clear. The updated estimate assumes that the airlines will earn this year, an increase of four billion dollars. In March, $ 8,600,000,000 had been predicted in December and 9.1 billion U.S. dollars. If confirmed, the new predictions that would be a drop of 78 percent compared with the 18 billion dollars profit, which recorded the industry last year.

criz clarit

IATA Director General Giovanni Bisignani explained the strong correction of the forecast with the rising price of oil, the consequences of the earthquake and tsunamis in Japan and the impact of the riots in many countries of the Arab world. In March, the aviation industry's governing body for the current year, an average price of 96 dollars per barrel of crude oil expected. Meanwhile, the IATA's forecast of an average price of 110 dollars per barrel. "Every dollar increase will cost the airlines $ 1,600,000,000, " said Bisignani. This has the effect that will make this year 30 percent of the fuel costs for airlines - 2001 there were only 13 percent.


The consequences of the unrest in North Africa and the Middle East is particularly true of the airlines of the countries concerned. The airlines of the region are expected in this post only a profit of 100 million dollars - last year it was $ 900 million. In the Asia-Pacific region will join the IATA forecast to the impact of the earthquake and tsunamis in Japan noticeable.
Nevertheless, the region with an expected profit of 2.1 billion dollar continues the most profitable in the world for the aerospace industry. In particular the strong economic growth in China and India, the negative effects of disasters in Japan will be more than compensated.


Europeans feel debt crisis


European airlines, according to IATA this year expecting a profit of $ 500 million - after a gain of 1.9 billion euros last year. The debt crisis in several states would reduce demand significantly. The airlines in North America can expect far better yields. Tells you ahead of the IATA estimates a profit of $ 1.2 billion this year. Also would be a massive drop in comparison with the 4.1 billion dollars profit from the previous year.


Despite the poor earnings prospects, the industry expects a significant growth. The number of passengers is expected to rise, according to IATA this year by 4.4 percent over the previous year. In the cargo area is a plus of 5.5 percent expected.


In the IATA 230 airlines are organized according to the association handle the combined 93 percent of world air traffic.