Eurozone crisis overtakes fuel

Eurozone crisis overtakes fuel
By admin


The Eurozone crisis has overtaken soaring fuel costs as the largest threat facing the global aviation industry, according to the International Air Transport Association’s revised industry outlook for 2012.

Although the updated projection still expects profits to plummet to $3 billion with a net profit margin of just 0.5%, it highlighted significant changes in the aviation landscape since its last forecast in March.

“The $3 billion industry profit forecast has not changed but almost everything in the equation has,” director general and chief executive Tony Tyler said.

While he admitted fuel prices were now lower than previously anticipated, down to $100 a barrel from $120 earlier this year, he stressed decreases were based on the expectation of “economic weakness ahead”.

“A few months ago, an oil price crisis was the biggest risk – now all eyes are on Europe,” he said.

He emphasised the risk of a major downward shift in economic prospects as uncertainty continues to cloud how European governments will manage the situation if the crisis were to intensify.

Europe was expected to be hit the hardest, but the rest of the world was also set for reduced profitability in 2012, according to IATA. The US emerged as the exception with projected profits upgraded to $1.4 billion from $0.9 billion as a result of "tight capacity management".

Asia Pacific was downgraded by $0.3 billion, but was still on track to make the largest contribution to industry profit accounting for $2 billion.

Latest News

  • Products

Embrace the journey: Traversing the world with the Shokz OpenRun

If you’ve been on the wrong side of a final call in the airport, or missed the stop on rail journey, it might be time to invest in a pair of Shokz OpenRun headphones. Originally marketed as headphones for fitness fanatics, runners or cyclists with a keen to steer clear of a prang with a car, […]

  • Tour Operators
  • Tourism

TTC: Deals are driving up demand for September trips

The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]

  • Aviation

Qantas ‘working urgently’ to fix app data leak

Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]

  • Hotels

Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa

Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]

  • Luxury
  • News

Kamalaya Koh Samui clinches clutch of wellness awards

Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]