A report from the International air transport association has cut their profit forecasts, for the 200 plus members of the aviation industry, from $12.7bn to $11.7bn. The cut is said to be due to the increase in oil prices due to the Middle East tensions, but IATA director general Tony Tyler said;
The industry situation is not improving as quickly as we had expected
Although the forecast has been cut, the profits are still likely to come in over $4bn higher than last years figures.
Airfreight still remains a high cost to shippers and there’s been a shift to lower cost methods like marine shipping, though growth is still slow in this sector also. The one constant in both is that they need oil to power the engines.
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