Eurocrisis to cost airline industry $8bn in 2012
Wednesday 04 January 2012 - The airline industry could lose a collective $8bn this year if the financial crisis in the Eurozone is not resolved.
According to the International Air Transport Association (IATA), a body that comprises around 230 airlines, the global airline sector will post a profit of $3.5bn this year, down from $6.9m last year.
“Although passenger markets have had some growth relative to the beginning of the year – about two per cent – the trend has been both soft and volatile. Continuing economic uncertainty will likely mean market shortcomings deepening as we enter 2012,” said Tony Tyler, IATA’s director general and CEO.
The body added that freight markets contracted by around four per cent compared with January.
International demand for North American airlines fell 1.2 per cent in November 2011 compared with the same month the year before. Demand for European airlines grew 4.9 per cent compared with the previous November’s 6.4 per cent and capacity increased by 5.3 per cent compared with 8.1 per cent the year before.
Latin American and Middle Eastern carriers recorded the strongest year-on-year growth at 8.8 per cent and 9.8 per cent respectively.
Tyler urged that governments forge new ideas on aviation tax in order to stem these losses. He commented: “The New Year’s resolution for every government with respect to aviation should be to stop over-taxation or mis-regulation of this vital economic driver”.
Mary-Anne.Baldwin@ubmaviation.com
Acting editor, Airline Fleet Management
