Paris: Political risks are increasingly threatening the health of the international airline sector amid further rises in fuel prices despite the industry's better management of capacity and demand, its main trade group said Tuesday.
Global passenger capacity expanded by 7.4% on the year in February, lagging behind a 8.6% increase in demand, allowing airlines to maintain a 75.3% load factor, up from 74.4% in February 2011, the International Air Transport Association said.
"The outlook is fragile," said Tony Tyler, IATA's chief executive. "While the threat of a European financial meltdown seems more remote than it did only a few months ago, the political risks that aviation faces are growing.
"The U.K. is increasing the onerous Air Passenger Duty, [while] Europe is adding to the burden with the inclusion of international aviation in its emissions trading scheme, the extraterritorial aspects of which are creating the possibility of a trade war that nobody can afford," Mr. Tyler said.
03/04/12 Wall Street Journal
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