Airline
industry reports massive losses
The
airline industry lost US$1.53 billion in the first quarter, a
reversal from a $17-million net profit reported a year ago, with
carriers in Europe and Asia-Pacific performing far worse than those
in other regions.
6
June, 2012
The
results from the International Air Transport Association (IATA) were
based on January-March results from 55 airlines.
The
most dramatic reversals were in the Asia-Pacific region, where
airlines reported a combined loss of $231 million versus net earnings
of $791 million in the same period last year. Carriers in Europe
reported losses of $1.71 billion, compared with losses of $1.68
billion a year ago.
Airlines
in three other geographical areas _ North America, Latin America and
the Middle East _ were profitable in the first quarter.
North
American airlines reported net earnings of $518 million, up from $5
million a year ago.
Middle
East airlines, which have expanded aggressively and are seen as a
threat by some carriers in other regions, posted a net profit of $195
million, down from $562 million in the same period last year.
IATA
said higher fuel prices squeezed margins and noted that the first
quarter is normally a weak time of year, but it said the evidence of
deterioration is clear.
The
Geneva- and Montreal-based group earlier this year said the airline
industry's profits could fall by 62% this year, a bigger drop than
predicted last December, due to rising fuel costs.
The
industry's net profit may fall to $3 billion this year from $7.9
billion last year, with profit margins coming in at 0.5% of sales,
IATA said in March.
IATA
forecast last Dec 7 that global airline earnings this year will total
$3.5 billion with a margin of 0.6%.
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