Airline confidence dips on fuel cost rise

The significant and continuous
increase in fuel costs is set to
impact negatively on airlines
across the globe with many
expecting to see profitability fall
in the coming months.
In its latest quarterly survey,
the International Air Transport
Association (Iata) found a sharp
fall in airline confidence, with
the bulk of respondents saying
they were now expecting the
level of profitability to fall
this year, driven largely by a
significant increase in fuel costs.
While 55% of respondents
reported improved profitability
during the first quarter of 2011,
almost a third reported poorer
results.
In March Iata revised down its
forecast for 2011 industry profits
to US$8.6 billion, a fall of
almost half from the estimated
US$16 billion profits achieved
in 2010.