Aviation industry's profit to shrink: IATA

Kuala Lumpur: The International Air Transport Association (IATA) has forecast aviation industry's profit margins to shrink this year, but expected players with presence in booming markets such as India to do better.
IATA downgraded the profit expectations of the industry for 2008 to USD 4.5 billion from the USD 7.6 billion it had forecast earlier.
All regions, except Africa, were expected to be profitable this year, it said.
"Compared with 2007, areas with strong commodity markets and strong ties to the booming economies of China, India, and Latin America are in general doing better," IATA Director General and Chief Executive Officer Giovanni Bisignani was quoted as saying by Bernama news agency.
The association said the downgrade was based on global economic growth slowing to 2.6 per cent and an average annualised oil price of 86 USD per barrel for Brent crude.
"We still expect a positive bottom line of USD 4.5 billion, but it's turning out to be a tough year," Bisignani said.
He said the broadening impact of the United States credit crunch had brought buoyant consumer confidence to an end.
02/04/08 Trading Markets

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Categories: Indian Aviation- In General Apr 2008