Top Airline Association Cuts 2019 Forecast for Industry Profits
- IATA cuts earnings estimate 21% to $28 billion for 2019
- Airlines made lower-than-estimated $30 billion last year
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The worsening U.S.-China trade war and rising costs are putting pressure on airline earnings as the International Air Transport Association cut its forecast for 2019 industry profits by more than a fifth.
Net income for 2019 will probably slump to $28 billion, compared with the $35.5 billion forecast in December, according to the industry trade group. That would also represent a decline of about 7% from 2018 as the trade war is expected to hurt cargo and even passenger traffic, said IATA, which represents about 290 airlines that make up more than 80% of air traffic.