IATA Warns of Effects of Eurozone Crisis On Airlines
IATA warns of effect of Eurozone crisis on airlines.
IATA director general and CEO Tony Tyler warns of the potential for billions in airline industry losses next year. (Photo: IATA)
IATA director general and CEO Tony Tyler warns of the potential for billions in airline industry losses next year. (Photo: IATA)

The International Air Transport Association (IATA) today announced revisions to its industry outlook for next year, downgrading its central forecast for airline profits from $4.9 billion to $3.5 billion for a net margin of 0.6 percent on threats posed by the so-called Eurozone crisis. It continues to forecast a weak, but unchanged, profit performance for this year, of $6.9 billion for a net margin of 1.2 percent, but it warned of a “severe downside risk” for 2012 based largely on the recently published economic outlook by the Organization of Economic Cooperation and Development (OECD).