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IATA warns on airline profits from fuel and global turmoil

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IATA warns on airline profits from fuel and global turmoil

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The world’s airlines have more than halved their forecast for profits this year – to just two 2.7 billion euros

The International Air Transport Association, which represents most global carriers, blamed that on high oil prices and turmoil in Japan, North Africa and the Middle East.

IATA’s last forecast was made just before the Japan earthquake and tsunami, since then the Arab uprisings have spread and oil has mostly been trading well above $100 a barrel.

The association also slammed Europe’s plans to force airlines to join a carbon dioxide emissions trading scheme next year.

The main US industry group has launched a challenge in EU courts to the scheme, which is designed to tackle growing greenhouse gas pollution from the aviation industry.

The Chinese government said it will also support legal action.

The airlines say the plan will only increase costs and add to pressures already caused by the sluggish global economy.