IATA expects trade tensions to hit airline profit outlook
IATA expects increasing trade tensions and higher costs will mean a cut in 2019 industry profit forecasts. IATA trimmed its 2019 global airline industry profit forecast to US$35.5b in December, from $38b, after it hit $32.3b in 2018. IATA DG Alexandre de Juniac gave a strong steer Friday that the industry group would trim its widely watched forecast again when it meets in Seoul next month. "We are a bit pessimistic," he said. "I think we should be more cautious," he added, referring to probable changes to the forecasts published in December. Trade tensions are already hurting cargo demand and passenger demand is sure to be affected too, he said. Airlines are also beginning to acknowledge concerns that the industry has reached the top of its business cycle after a longer than usual expansion. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2019-05-20/general/iata-expects-trade-tensions-to-hit-airline-profit-outlook
https://portal.staralliance.com/cms/logo.png
IATA expects trade tensions to hit airline profit outlook
IATA expects increasing trade tensions and higher costs will mean a cut in 2019 industry profit forecasts. IATA trimmed its 2019 global airline industry profit forecast to US$35.5b in December, from $38b, after it hit $32.3b in 2018. IATA DG Alexandre de Juniac gave a strong steer Friday that the industry group would trim its widely watched forecast again when it meets in Seoul next month. "We are a bit pessimistic," he said. "I think we should be more cautious," he added, referring to probable changes to the forecasts published in December. Trade tensions are already hurting cargo demand and passenger demand is sure to be affected too, he said. Airlines are also beginning to acknowledge concerns that the industry has reached the top of its business cycle after a longer than usual expansion. <br/>
