Air Travel Group IATA Says Airlines Stand To Lose Billions If Euro Crisis Worsens
GENEVA - A global aviation trade group says earnings in the industry will likely decline to $3.5 billion in 2012 but those could turn into steep losses exceeding $8.3 billion if the eurozone crisis veers toward catastrophe.
For 2011, the industry says it anticipates that surging oil and fuel prices will clip it profits at $6.9 billion less than half of its $15.8 billion in 2010 profits.
The International Air Transport Association's annual review focused on Europe's debt crisis that is threatening the global economy.
The Geneva-based trade group called the gloomy economic outlook particularly weak European demand and higher costs challenging for aviation throughout the world, despite strong growth in Asia.
It said European airlines face certain losses next year.