INSUBCONTINENT EXCLUSIVE:
Transport Association (IATA) on Sunday downgraded outlook for the global aviation industry's profit to $28 billion from $35.5 billion,
forecast in December 2018.The revised outlook is also lower than the net profit estimate for 2018, which IATA had pegged at $30 billion."The
business environment for airlines has deteriorated with rising fuel prices and a substantial weakening of world trade," the association of
global airlines said in a statement."In 2019, overall costs are expected to grow 7.4 per cent, outpacing a 6.5 per cent rise in revenues
As a result, net margins are expected to be squeezed to 3.2 per cent (from 3.7 per cent in 2018)
profit for the sector, IATA said margins were declining on the back of rising costs."Weakening of global trade is likely to continue as the
US-China trade war intensifies
This primarily impacts cargo business, but passenger traffic could also be impacted as tensions rise," said Alexandre de Juniac, IATA's
director general and CEO.The IATA, however, said a downturn in the trading environment would not plunge the industry into a deep
board of governors for a one-year term, effective from the conclusion of the 75th IATA Annual General Meeting in Seoul, South Korea
Sunday, are Ajay Singh, chairman and managing director of budget airlines SpiceJet.
