The intensifying US-China trade war and rising fuel prices will continue to bog down airline profits this year, the International Air Transport Association said on Sunday.
The warning came at the annual meeting of global airlines in Seoul, where it was revealed that 2019’s collective net profit was forecast to be $28 billion, down from an outlook of $35.5 billion released in December.
The grim outlook was driven by rising costs across the board, including labour, fuel and infrastructure, the IATA said, adding the worsening trade war between the two world powers was not helping.
“Weakening of global trade is likely to continue as the US-China trade war intensifies,” said IATA chief executive Alexandre de Juniac.
