Dubai, June 7 (PTI) The International Air Transport Association (IATA) has further downgraded its 2011 airline industry profit forecast to USD 4 billion.
This would be a 54 per cent fall compared to the USD 8.6 billion profit forecast in March and a 78 per cent drop from the USD 18 billion net profit (revised from USD 16 billion) recorded in 2010.
On expected revenues of USD 598 billion, a USD 4 billion profit equates to a 0.7 per cent margin.
"Natural disasters in Japan, unrest in the Middle East and North Africa, plus the sharp rise in oil prices have slashed industry profit expectations to USD 4 billion this year. That we are making any money at all in a year with this combination of unprecedented shocks is a result of a very fragile balance," said Giovanni Bisignani, the IATA's Director General and CEO.