Fears over China’s economy and high fuel costs could wipe out $700 million (£418 million) in profits from the airline industry this year, officials warned today.
The International Air Transport Association said it expects airlines across the globe to make a profit of $18 billion, compared with the $18.7 billion it previously forecast in March.
At its annual meeting in Qatar, the IATA said the sector is also being hit by rising infrastructure costs, taxes and regulation.
Director general Tony Tyler said: “Aviation is a catalyst for economic growth. Airline revenues now total 1% of global GDP and the industry will safely transport 3.3 billion people and $6.8 trillion worth of goods this year.
“Governments should understand that the real value of aviation is the global connectivity it provides and the growth and development it stimulates, not the tax receipts that can be extracted from it.”
