By IANS,
New Delhi : The International Air Transport Association (IATA) Wednesday said it expects the airline industry to clock a net profit of $8.6 billion in 2011, lower than the $9.1 billion it estimated in December 2010.
“Political unrest in the Middle East has sent oil over $100 per barrel. That is significantly higher than the $84 per barrel that was the assumption in December,” IATA’s director general and chief executive Giovanni Bisignani said.
According to him, the net profit for the fiscal year will plunge by 46 percent from the high of $16 billion earned by the industry last year.
“Stronger revenues will provide only a partial offset to higher costs. Profits will be cut in half compared to last year and margins are a pathetic 1.4 percent,” Bisignani said.