The International Air Transport Association has downgraded its global profit forecast for 2012 from $3.5 billion to $3 billion amid escalating fuel prices. It’s a number that could have been significantly lower, had cargo markets not stabilized and the U.S economy not improved, according to an IATA press release.
Even so, IATA Director General and CEO Tony Tyler said 2012 has been a challenging year for carriers. With oil at $115 per barrel — $16 higher than IATA forecasted in December — Tyler said the “risk of a worsening eurozone crisis has been replaced by an equally toxic risk: rising oil prices.”
Nevertheless, IATA said that purchasing managers are becoming less pessimistic about airfreight, which should lead to an uptick in airfreight in the second half of 2012.
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