Iata cuts 2014 global airline profit forecast to $23.7bn
Published on Mar 12, 2014 5:20 PM
GENEVA (REUTERS) - The Ukraine crisis and economic worries in Latin America have prompted the airline industry to trim US$1 billion off its global profit forecast for 2014, the International Air Transport Association said on Wednesday.
The Geneva-based organisation now expects airlines to make a profit of US$18.7 billion (S$23.7 billion) this year, down from US$19.7 billion in its previous forecast in December, but the industry remains on an upswing after a US$12.9 billion profit in 2013.
Higher oil prices due to tensions in Crimea are expected to add US$3 billion in previously unexpected costs in 2014, partially offset by a US$2 billion upward revision in cargo revenue.
Economic weakness in Argentina and Brazil is also expected to weigh on profits.
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