IATA mulls on revising down $3b profit forecast for aviation

Euro woes affecting Asia's export on top of the consideration.

In a press release, the International Air Transport Association (IATA) announced that the 68th IATA Annual General Meeting (AGM) and World Air Transport Summit will open in Beijing, China on Monday 11 June 2012. The event will bring together some 650 leaders of the global aviation industry for two days of intense discussions on the industry’s most important issues. 

The press release also mention that the association on that date will revise the outlook for industry-wide profits taking into consideration the volatility over recent months. 

In March, IATA announced its industry outlook for a $3.0 billion profit on $633 billion in revenues for a net margin of 0.5%.

“Oil prices are high, although moderating somewhat from recent peaks. The European sovereign debt crisis is unresolved and we are seeing signs that it is starting to affect Asia’s export-driven economies. And the largely jobless recovery from the 2008 global financial crisis is proceeding at a glacial pace. Passenger demand is strong, cargo is weak and the industry’s profitability remains razor thin,” said Tony Tyler, IATA’s Director General and CEO.