Surging oil prices will deal a shattering blow to global airline profits this year and threaten the industry`s recovery, the International Air Travel Association warned yesterday.
IATA now fears airlines will post profits of just $4 billion ( £ 2.44 billion) around 2.73 billion euros in 2011, less than half the amount it forecast in March and a fraction of the $18 billion (£29.52 billion) around 20.16 billion euros in profits seen last year.
The forecast comes as the Organisation of the Petroleum Exporting Countries (OPEC) faces pressure to ease the pressure on oil prices by upping production at the cartel`s meeting in Vienna today.
Director general Giovanni Bisignani warned " there is little buffer left against further shocks". Giovanni said that " we are making any money at all in a year with this combination of unprecedented shocks is a result of very fragile balance. The efficiency gains of the last decade and the strengthening of global economic environment are balancing the high price of fuel".
Camair-co is in a situation of holding up better than increasingly price-sensitive leisure travel, according to numerous sources who have spoken anonymously to IATA. Camair-co today faces fresh headwinds the political turmoil in the North Africa as well as the high oil price, IATA said.
Tomorrow in Vienna, members of the OPEC will decide to increase or not of at least one million barrels a day, as they have so far failed to fill the gap in the market left by Muammar Gaddafi`s battle for survival that has left the global market around 1.4 million barrels short.
An insider source from Camair-Co recently warned that the rising cost of oil would force its fares up by an average between 10-12% this year and the company could even see losses virtually doubled.
But the company will have to review his forecast and then talk about the raising oil output for the first time since the launch of the first commercial flight to Paris. It seems that the government and the managing executives of the company slowly, but surely are getting ready to respond to an environment of higher oil prices and lower growth.
Camair-Co still failing to satisfy its customers and poor customer service comments still dominate and is likely to continue to be perceived as one of the worst rather than one of the best airline national company.
IATA now fears airlines will post profits of just $4 billion ( £ 2.44 billion) around 2.73 billion euros in 2011, less than half the amount it forecast in March and a fraction of the $18 billion (£29.52 billion) around 20.16 billion euros in profits seen last year.
Director general Giovanni Bisignani warned " there is little buffer left against further shocks". Giovanni said that " we are making any money at all in a year with this combination of unprecedented shocks is a result of very fragile balance. The efficiency gains of the last decade and the strengthening of global economic environment are balancing the high price of fuel".
Camair-co is in a situation of holding up better than increasingly price-sensitive leisure travel, according to numerous sources who have spoken anonymously to IATA. Camair-co today faces fresh headwinds the political turmoil in the North Africa as well as the high oil price, IATA said.
Tomorrow in Vienna, members of the OPEC will decide to increase or not of at least one million barrels a day, as they have so far failed to fill the gap in the market left by Muammar Gaddafi`s battle for survival that has left the global market around 1.4 million barrels short.
An insider source from Camair-Co recently warned that the rising cost of oil would force its fares up by an average between 10-12% this year and the company could even see losses virtually doubled.
But the company will have to review his forecast and then talk about the raising oil output for the first time since the launch of the first commercial flight to Paris. It seems that the government and the managing executives of the company slowly, but surely are getting ready to respond to an environment of higher oil prices and lower growth.
Camair-Co still failing to satisfy its customers and poor customer service comments still dominate and is likely to continue to be perceived as one of the worst rather than one of the best airline national company.
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