We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
RSS FeedFinancial Planning

Airlines halve full-year profit forecasts


Global turmoil and rising oil prices damage leading carriers

Article comments

The world’s leading airlines halved their profit forecast for the full year with high oil prices and turmoil in various parts of the world cited as leading factors hindering the industry’s performance.

Japan’s recent natural disasters, political unrest in the Middle East and North Africa and oil prices above $100 a barrel helped damage the prospects of groups represented by the International Air Transport Association (IATA), the organisation said on Monday.

The views of most global carriers are reflected by the IATA, with the latest profit forecasts for the industry put at $4 billion for the year, down from $8.6 billion just over three months ago.

“The efficiency gains of the last decade and the strengthening global economic environment are balancing the high price of fuel,” the IATA’s director general, Giovanni Bisignani, told the group’s annual general meeting in Singapore.

“But with a dismal 0.7 percent margin, there is little buffer left against further shocks.”

Another concern for the association is that of a potential trade war if European regulators move ahead with plans oblige airlines to join a carbon emissions trading scheme.

Airlines say the scheme, designed to tackle growing emissions from the aviation industry, will only increase costs and add to pressures already caused by the sluggish global economy.

Share:

Recommended Articles

Comments

Airlines halve full-year profit forecasts
Financial Planning

Could CFOs do more to boost shareholder value?

Could CFOs do more to boost shareholder value?

Working capital improvements start to pay off, but more could be donemore ..


Balfour rejects Carillion's "improved" £2bn merger bid

Balfour board says the offer does not address its two main concernsmore ..

Persimmon posts 57% rise in pretax profits

The FTSE100 housebuilder credits Help to Buy with encouraging growthmore ..

Inflation rate eases to 1.6% thanks to generous summer sales

Price drops in clothing and food biggest contributor to fall in inflationmore ..

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unansweredmore ..

Budget: What business wants

CFOs are keen for the chancellor to avoid any uncertaintymore ..

Send to a friend

Email this article to a friend or colleague:


PLEASE NOTE: Your name is used only to let the recipient know who sent the story, and in case of transmission error. Both your name and the recipient's name and address will not be used for any other purpose.



In Depth
Can finance rise to the challenge of major transformation?

Can finance rise to the challenge of major transformation?

Outdated finance processes, systems and competencies leave too many questions unanswered more ..

In Depth
Interim CFO or consultant? The pros and cons

Interim CFO or consultant? The pros and cons

Ed Harding offers an insight into the life of an interim CFO and the advantages in driving transformation more ..

Advertisement

* *