SINGAPORE: Global airlines body IATA more than halved its forecast for 2011 industry profits on the back of high oil prices and turmoil in Japan, North Africa and the Middle East.
IATA, whose airlines claim to carry 93 percent of global passenger traffic, said it expected industry profits of $4 billion in 2011, down from a previous forecast of $8.6 billion.
Economists say the industry's outlook is a guide to the strength of cyclical recovery in developed markets and growth in emerging economies, which rely heavily on air transport.
The 230-member International Air Transport Association also revised up its estimate for profits in 2010, to $18 billion from $16 billion.
Airlines rebounded faster than expected from recession last year, helped by higher traffic and a drive to keep a lid on spare capacity. But a series of external shocks and higher oil prices have hit the industry hard this year.
Airlines had been bracing for lower forecasts at this week's major conference as fears grow over the global economy. ' Reuters
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IATA, whose airlines claim to carry 93 percent of global passenger traffic, said it expected industry profits of $4 billion in 2011, down from a previous forecast of $8.6 billion.
Economists say the industry's outlook is a guide to the strength of cyclical recovery in developed markets and growth in emerging economies, which rely heavily on air transport.
The 230-member International Air Transport Association also revised up its estimate for profits in 2010, to $18 billion from $16 billion.
Airlines rebounded faster than expected from recession last year, helped by higher traffic and a drive to keep a lid on spare capacity. But a series of external shocks and higher oil prices have hit the industry hard this year.
Airlines had been bracing for lower forecasts at this week's major conference as fears grow over the global economy. ' Reuters
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