The global aviation industry could report losses of USD5.3 billion in what is set to be another tough year in 2012 amid weak global GDP growth and rising fuel costs. Average oil prices could reach as high as USD135/bbl in 2012, according to IATA’s ‘oil spike’ forecast for 2012. However, the industry body’s ‘central forecast’ outlines an expected profit decline from USD3.5 billion to USD3 billion in 2012 for an “anemic” 0.5% profit margin, based on fuel prices at USD115/barrel. However, the forecast marks an improvement from the ‘banking crisis’ forecast provided in Dec-2011 of a potential USD8.3 billion loss.

These latest observations from IATA are yet another reminder of the fragility of the aviation business. Its exposure to myriad externalities and uncertainties make sustained profitability difficult.

The global aviation industry could report losses of USD5.3 billion in what is set to be another tough year in 2012 amid weak global GDP growth and rising fuel costs. Average oil prices could reach as high as USD135/bbl in 2012, according to IATA’s ‘oil spike’ forecast for 2012. However, the industry body’s ‘central forecast’ outlines an expected profit decline from USD3.5 billion to USD3 billion in 2012 for an “anemic” 0.5% profit margin, based on fuel prices at USD115/barrel. However, the forecast marks an improvement from the ‘banking crisis’ forecast provided in Dec-2011 of a potential USD8.3 billion loss.

These latest observations from IATA are yet another reminder of the fragility of the aviation business. Its exposure to myriad externalities and uncertainties make sustained profitability difficult.

More information here

 

Source: CAPA

 

posted by flytobarcelona.org

Barcelona Air Route Development Committee promotes Barcelona Airport intercontinental flights.