Global Biz

IATA says airline profits to plunge this year

(Agencies)
Updated: 2011-06-06 12:49

SINGAPORE - A global airline group says the industry's profits will likely plummet this year because of natural disasters, political violence and higher fuel prices.

International Air Transport Association Director General Giovanni Bisignani said in a statement Monday that airlines will probably earn about $4 billion this year, down from $18 billion last year.

Bisignani said IATA's previous forecast in March estimated 2011 profits of $8.6 billion.

Bisignani said the earthquake and tsunami in Japan, uprisings in the Middle East and North Africa and higher jet fuel prices are hurting airline profits this year.