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FINANCIAL NEWS
ME political turmoil strikes airline industry
03 Mar 2011
(MENAFN) The Director General and CEO of International Air Transport Association (IATA), Giovanni Bisignani, said that airline industry in the Middle East would be negatively affected by the political turmoil taking place in the region, reported Gulf News.
Bisignani said that net profit of carriers in the region is estimated to decrease to USD700 million in 2011 from USD1.1 billion in 2010.
According to IATA, Egypt, Tunisia and Libya, which all experienced major political instability, account for twenty percent of the region’s international passenger traffic.
Bisignani added that the turmoil spreading across the Middle East had caused oil prices to increase to USD100 per barrel, compared with the USD84 per barrel price etsimated in December.
IATA stated that it lowered its outlook for overall airline industry in 2011 to USD8.6 billion from the USD9.1 billion it estimated in December 2010.
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