Industry Group Predicts Plunge in Airline Profits

Posted June 6th, 2011 at 3:00 am (UTC-5)
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An international industry group predicts that airline profits will plummet this year because of natural disasters, political violence and higher fuel prices.

At its annual meeting in Singapore Monday, the International Air Transport Association said airlines will probably earn only $4 billion in 2011, down from $18 billion last year.

IATA Director-General Giovanni Bisignani said in a statement that profit expectations for the industry have been slashed by the March 11 earthquake in Japan, unrest in the Middle East and North Africa, and a sharp rise in oil prices.