Wednesday, December 7, 2011

Airlines: 2011 profits down because of oil price (AP)

GENEVA ? A global aviation trade group says earnings in the industry will likely decline to $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.

Source: http://us.rd.yahoo.com/dailynews/rss/eurobiz/*http%3A//news.yahoo.com/s/ap/20111207/ap_on_bi_ge/eu_airlines_economic_outlook

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