Global airlines slash profit outlook as fuel costs jump

(June 4): Global airlines on Monday slashed their forecast for industry profits in 2018 on a spike in fuel costs, while warning higher interest rates and a host of geopolitical tensions would add to operating risks.

The International Air Transport Association (IATA), which represents about 280 carriers, said the industry is expected to post a US$33.8 billion ($45.2 billion) profit this year, 12% below a previous forecast of US$38.4 billion.

But passenger yields, a proxy for air fares, are expected to rise by 3.2% this year, the first annual gain since 2011 as a stronger global economy drives growth in demand, IATA said.

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