IATA predicts drop in airline profits by 21% due to rising kerosene prices and trade wars

The International Air Transport Association (IATA) lowered its revenue forecast for the aviation industry for 2019 due to deteriorating market conditions, the trade war between the United States and China, and rising jet fuel prices. The forecast was announced at the IATA’s Annual Summit in Seoul.

Alexander de Juniac, CEO, IATA, said, “Airlines will make a profit this year, but it’s not easy for them to make money.” According to him, protectionist and isolationist political measures are now on the rise and this is hampering air carriers.

In 2019, the total profit of the industry could reach US $ 201 billion, which is by 21% below the forecast that IATA gave in December 2018.

IATA members express their concern in the situation with “landing” of the Boeing 737 MAXs. Air companies suffer heavy losses due to the downtime of these aircraft, meanwhile, it is not yet clear whether the U.S. aircraft manufacturer is going to compensate for these costs.

IATA consists of about 290 airlines, which account for more than 80% of the total world air traffic.

Source – https://www.iata.org/

Leave a Reply

Your email address will not be published. Required fields are marked *