IATA lowers 2018 profit forecast 12% as fuel costs rise
IATA downgraded its 2018 profit forecast for the global airline industry, projecting airlines will collectively earn US$33.8b this year, down 12% from the $38.4b predicted in Dec 2017. Fuel costs are much higher than IATA expected when it made its previous forecast six months ago, with Brent Crude oil prices averaging more than $76 per barrel as of June 4. Fuel costs are “quite a big challenge and that’s the principal reason we’re forecasting a squeeze on profitability in 2018,” IATA chief economist Brian Pearce said. Nevertheless, Pearce urged viewing the latest forecast in context. IATA still believes airlines globally will generate more revenue in 2018—$834b, up 10.7% from $754b in 2017—than in any year in the industry’s history. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-06-05/general/iata-lowers-2018-profit-forecast-12-as-fuel-costs-rise
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IATA lowers 2018 profit forecast 12% as fuel costs rise
IATA downgraded its 2018 profit forecast for the global airline industry, projecting airlines will collectively earn US$33.8b this year, down 12% from the $38.4b predicted in Dec 2017. Fuel costs are much higher than IATA expected when it made its previous forecast six months ago, with Brent Crude oil prices averaging more than $76 per barrel as of June 4. Fuel costs are “quite a big challenge and that’s the principal reason we’re forecasting a squeeze on profitability in 2018,” IATA chief economist Brian Pearce said. Nevertheless, Pearce urged viewing the latest forecast in context. IATA still believes airlines globally will generate more revenue in 2018—$834b, up 10.7% from $754b in 2017—than in any year in the industry’s history. <br/>
