Airlines: 2011 profits down because of oil prices

AP, Wednesday 7 Dec 2011

Global aviation group says industry could lose over $8.3 billion if the Eurozone crisis is not resolved

A global aviation trade group says earnings in the industry will likely decline to US$3.5 billion in 2012 but those could turn into steep losses exceeding $8.3 billion if the Eurozone crisis veers toward catastrophe.

For 2011, the industry says it anticipates that surging oil and fuel prices will clip it profits at $6.9 billion — less than half of its $15.8 billion in 2010 profits.
 
The International Air Transport Association's annual review focused on Europe's debt crisis that is threatening the global economy.
 
The Geneva-based trade group called the gloomy economic outlook — particularly weak European demand and higher costs — challenging for aviation throughout the world, despite strong growth in Asia.
 
It said European airlines face certain losses next year.
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