The International Air Transport Association is
lowering its 2019 profit forecast for the airline
industry amid rising fuel prices and weakening
world trade.
The Montreal-based IATA said airlines are
expected to earn $28 billion this year, down from
the $35.5 billion it had predicted in December.
“Margins are being squeezed by rising costs
right across the board, including labor, fuel,
and infrastructure,” the industry body said in a
statement at its annual meeting in Seoul.
It said competition among airlines remains
stiff and “weakening of global trade is likely to
continue as the U.S.-China trade war intensifies,”
primarily affecting the cargo business, although
passenger traffic could also be hit if tensions rise.