Airline Profits to Drop 40% on Taxes, Oil, Group Says

Airlines may post a 40 percent decline in combined profits next year on slower economic growth, higher fuel costs and austerity measures in Europe, a leading industry group said today.

Net income will drop to $9.1 billion in 2011 from $15.1 billion this year, International Air Transport Association Chief Executive Officer Giovanni Bisignani told reporters in Geneva. With revenue set to grow 5.8 percent to $598 billion, the profit margin will fall by almost half to 1.5 percent, he said.