The losses of European air carriers could reach 1,1 billion dollars this year, the International Air Carriers Association (IATA) announced on Monday, reviewing the initial estimate, of a negative result of 600 million dollars, following the crisis.
The debt crisis in Europe could also affect 3's estimated $ 1 billion profit globally for 2012, warned IATA, an organization that represents most of the international airlines, according to Bloomberg. (via Mediafax)
The profit on 2012 was estimated to be below 50% compared to 2011, that is to say approximately 3 billion dollars compared to last year's 7,9 billion, and tends to be even lower. The recession in the UK, Spain and other European states limits the demand and the beneficial effect of lower fuel prices.
IATA has also revised the Asia-Pacific region's profit forecast from 2,3 billion dollars, as anticipated in March, to 2 billion dollars. Also, the slowdown in economic growth in China and India discourages travel. Last year, airlines in the region made a profit of 4,9 billion.
But there is good news too! IATA has improved its profit forecast for North American operators from 900 million to 1,4 billion and from 100 million to 400 million for Latin America. Latin American countries are becoming more attractive to tourists, but also to businessmen.
In the Middle East, IATA has revised the profit forecast from 500 million to 400 million, largely due to the impact of the crisis in Europe.
If we take the line, 2012 is not a good year for many airlines. The high price of fuel and fewer passengers on certain routes will lead to bankruptcy of some operators. Hopefully, the situation will recover during the summer and winter season, when the tourist trips will increase.