IATA forecasts decline in airline revenues for 2012
The International Air Transport Association says the global airline industry will continue to perform poorly this year as a result of the rising cost of fuel and weak economies.
The International Air Transport Association (IATA) forecasts that airlines will continue to see declines in revenues, generating profits of only $ 3.5 billion this year, representing a drop from the estimated $ 6.9 billion in 2011.
That notwithstanding,Regional Manager of Emirates, Fouad Caunhye, touches on the future of the industry and plans to manage the bleak outlook.
IATA is downgrading the aviation sector’s 2012 profit, which highlights the continued profitability
challenge facing the world’s airline industry. This will see global airlines report at best a 49% year-on-year reduction in net profitability from forecast profit levels of USD6.9 billion in 2011.
The reduction reflects the risk of recession in Europe and slower global economic growth. Economies and air transport markets in Africa continue to grow, but load factors are not expected to be strong enough, to offset the impact of weaker yields on profitability.
However, Fouad Caunhye says his outfit is positively expectant of the region. IATA also predicts a slowdown in global airline passenger growth, from 6 % in 2011 to 4% in 2012.
Accra, May 17, 2012
Government’s management of revenue generated from the country’s oil and gas resources will today come under intense scrutiny ... 