IATA to downgrade airline profit forecast on rising fuel prices
IATA is set to cut its forecast for this year’s airline industry profits as fuel prices continue to rise more quickly than expected. IATA is scheduled to release its next industry financial forecast June 4 during the group’s annual general meeting (AGM). Speaking at an event before the AGM, IATA DG Alexandre de Juniac signalled that the profit forecast will be revised downward. In the last forecast in December, IATA predicted a global industry profit of more than US$38b. De Juniac noted that “solid demand growth” is good news for the CEs gathering for the AGM. However, “they will certainly also be worried about the rising cost of fuel,” he said. The December forecast assumed oil prices of $60 per barrel, but prices are now approaching $80. The industry is still expected to remain in the black this year, de Juniac said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-06-01/general/iata-to-downgrade-airline-profit-forecast-on-rising-fuel-prices
https://portal.staralliance.com/cms/logo.png
IATA to downgrade airline profit forecast on rising fuel prices
IATA is set to cut its forecast for this year’s airline industry profits as fuel prices continue to rise more quickly than expected. IATA is scheduled to release its next industry financial forecast June 4 during the group’s annual general meeting (AGM). Speaking at an event before the AGM, IATA DG Alexandre de Juniac signalled that the profit forecast will be revised downward. In the last forecast in December, IATA predicted a global industry profit of more than US$38b. De Juniac noted that “solid demand growth” is good news for the CEs gathering for the AGM. However, “they will certainly also be worried about the rising cost of fuel,” he said. The December forecast assumed oil prices of $60 per barrel, but prices are now approaching $80. The industry is still expected to remain in the black this year, de Juniac said. <br/>
