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Global Airlines Profits Seen Hit by Oil Costs

Wednesday, 02 Mar 2011 09:08 AM

The International Air Transport Association has cut its forecasts for 2011 global airline profits because of the recent surge in crude oil prices.

Geneva-based IATA said on Wednesday that it had downgraded its forecast for industry net profits to $8.6 billion from the $9.1 billion it had estimated in December. That's a sharp 46 percent drop on the $16 billion earned by the industry in 2010.

IATA, which represents more than 240 airlines around the world, expects industry revenues of $594 billion.

Political unrest in Libya and the Middle East has pushed oil over $100 a barrel in recent weeks -- significantly higher than the $84 a barrel that IATA used to make its December forecast. Fuel accounts for almost 40 percent of an airline's operating costs.

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The International Air Transport Association has cut its forecasts for 2011 global airline profits because of the recent surge in crude oil prices. Geneva-based IATA said on Wednesday that it had downgraded its forecast for industry net profits to $8.6 billion from the $9.1...
Airlines Outlook
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2011-08-02
Wednesday, 02 Mar 2011 09:08 AM
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