IATA again cuts airline profit forecast

Forecast for airline post-tax profits in 2012 now at $3 billion

IATA has chosen to downgrade its forecast for airline net post-tax profits in 2012 to $3 billion, down from $3.5 billion. Oil supply concerns have led the airline body to raise its forecast for oil prices this year to be raised to $115 a barrel, adding significantly to costs. Yet the damage to profitability has so far been limited by the boost to revenues from improving business and consumer confidence and higher load factors.
“We also now expect airlines to be able to hold capacity below demand growth, improving asset utilisation and partially offsetting higher fuel and tax costs,” the IATA forecast reads.
Airlines ended 2011 with a slightly better than expected performance, but European airlines are still expected to come under pressure this year from the recession in many parts of Europe as well as the impact of taxation and the EU ETS.
IATA cautions: “We estimate the impact of the risk of oil prices being pushed to $150/b in the second half of 2012, were the situation in Iran to deteriorate significantly – in this scenario we estimate the industry could be pushed into losses exceeding $5 billion.”
Wall Street Journal


Check Also

airlines, air travel, demand, passengers, business, IATA, 2016, Europe, world, RPK, capacity, Alexandre de Juniac

Farnborough Air Show day 1, airlines announced new aircraft orders for more than USD 20 billion.

The bi-annual airshow at Farnborough airport outside London is the world’s largest display of aircrafts, both civil and military, together with the bi-annual Paris Air Show, at Le Bourget airport. The Farnborough Air Show is on during July 16-22 and Standby Nordic will report on relevant news.

IATA, ACI, Eurocontrol, capacity, airports, tight, crunch, compatition, slots, management, congestion, air travel, airlines, EU, Europe, report, study

Airlines urge airports to ease capacity crunch

IATA weighs into the debate about the growing squeeze at airports, saying airports and governments “must do more”.

IATA, Al Baker, Qatar Airways, CEO, management, gender equality, airlines, board, man, women

Qatar CEO: Only a man can run an airline

The new chairman of the International Air Transport Association embarrasses his colleagues.

air travel, airlines, costs, 2018, warning, IATA

Airlines cut profit forecasts as costs soar

Rising costs such as fuel, staff, rising interest rates and trade tensions are adding to airlines' woes in 2018.

air travel, 2018, delays, flights, number, Eurowings, Germany, Ryanair, airlines, Condor, Air Berlin, fleet, strike, weather

Europe air passenger demand sharply down

The factors behind the trend are a slowing of economic growth and fewer discounts due to higher costs.

IATA, payment, credit card, account, bank, new, system, platform, pilot, project, test, fraud, fees

Airlines to test sales without credit cards

In a pilot project overseen by IATA, some airlines will soon start to allow payments direct from bank accounts.