European Financial Crisis Will Drag Down Airline Profits This Year, Says IATA
Airline losses in Europe are set to escalate this year as the continent's financial crisis saps economic growth.
IATA’s annual general meeting in Beijing was given a warning of further reductions in airline profit margins this year. (Photo: IATA)
IATA’s annual general meeting in Beijing was given a warning of further reductions in airline profit margins this year. (Photo: IATA)

Europe’s mounting financial crisis is dragging down worldwide airline profitability this year, according to a revised industry forecast from the International Air Transport Association (IATA). Overall, the industry’s 2012 collective profits of around $3 billion are expected to be about the same as those IATA included in its previous March 2012 forecast, but the group’s June 11 report, presented at its annual general meeting in Beijing, warns that losses at European airlines are now set to double to $1.1 billion as anticipated losses in the banking sector and threats to the euro currency zone damage prospects for economic growth.