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Airlines to see more profit problems, IATA says
SINGAPORE, Feb 18 (WorldACD) - Global airlines are likely to see a further profit cut in 2008 as the global credit crisis deepens, while fuel costs remain near record highs, the International Air Transport Association said.
The association, which represents 240 airlines comprising about 94 percent of international air traffic, in December cut its 2008 earnings forecast for members by more than a third to USD$5 billion, citing the two factors. It is due to revise the forecast in two months.
Growth in global travel demand is expected to slow this year on fears that a possible US recession will lead to a global economic slowdown, while crude oil is still trading over US$95 a barrel.
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