Things are beginning to tighten up for the airline industry, as the relief of the global economic upsurge in 2010 begins to taper off. As a general indicator, airline share prices have under-performed by 17% so far this year as financial markets take a bearish view – and early first quarter results showed a net loss for airlines as profit margins were squeezed by higher fuel prices. Both air travel and freight markets had a hiccup, as they were depressed by recent events in Japan – but, according to an economist with the International Air Transport Association (Iata), expansion is not over yet.
Airline profit margins squeezed
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