Global trade tensions have led the International Air Transport Association (IATA), the airline industry’s top trade body, to downgrade its profit forecast for 2019, underscoring the impact of the US-China trade dispute, said the Financial Times.
IATA, which represents about 290 airlines that account for more than 80% of all air traffic, cut its forecast for the industry’s overall profits this year from $35.5 billion to $28 billion, a 7% decline from 2018.
“Weakening of global trade is likely to continue as the US-China trade war intensifies,” said Alexandre de Juniac, IATA’s director-general and chief executive officer.
“This primarily impacts the cargo business, but passenger traffic could also be impacted as tensions rise. Airlines will still turn a profit this year, but there is no easy money to be made,” said Juniac.