8 DEC: The eurozone crisis could lead to global aviation industry losses next year totalling more than $9 billion, IATA warned yesterday.
Profits by airlines around the world are set to be far lower than previously forecast next year, the association said in a statement.
It estimates airlines will make a total profit of $6.9 billion this year.
But next year this will fall to $3.5 billion from $4.9 billion expected earlier, and this could turn into a loss of $8 billion if the eurozone crisis spread.
"The eurozone crisis puts severe downside risk on the 2012 outlook as illustrated by the recently published OECD economic outlook," IATA said.
"In a worst-case scenario, should the eurozone crisis evolve into a full-blown banking crises and European recession, IATA estimates that the global aviation industry could suffer losses exceeding $8 billion in 2012."
IATA chief Tony Tyler said the biggest threat to airline profits would be any failure by eurozone governments to resolve the debt crisis.
"Such an outcome could lead to losses of over $8 billion, the largest since the 2008 financial crisis," he warned.
