Saudi Arabia

Global airline industry to plummet in 2012

In previous years, the culprit for crashing profits of airlines was high oil prices. This year, that oil challenge has strong partner: the ongoing eurozone crisis. At the annual general meeting of airline industry group IATA in Beijing on Monday, June 11, global profits this 2012 is seen to plummet to just around US$3 billion from $7.9 billion in 2011. Leaders warned how volatile political situations could push up oil prices higher than its average of US$110 a barrel for the year, and how the banking-turned-eurozone-wide crisis threaten to trigger a continent-wide recession. That would offset the gains by carriers that are flying high in Asia-Pacific, including the Philippines. 

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