First-class fall in airline profits
A fall in the number of first class and business class passengers is likely to push European airlines into the red this year, it has been forecast.
European carriers are expected to post combined losses of around £750 million in 2012, the International Air Transport Association (Iata) has predicted.
Iata said that in July, on the lucrative North Atlantic routes, first class and business class travel – known as premium travel – was 2.4% down on the same time last year. It added that within Europe in July 2012 premium travel was down 3.5%.
Iata said: “European airlines are expected to post the largest loss of any region. While governments and the European Central Bank have taken measures to shore up confidence in the euro, these have been fraught with political difficulties.
“Additionally, the region is plagued by high taxes, inefficient air traffic management infrastructure and an onerous regulatory environment.”
Overall, Iata predicted that world airline profits will reach around £2.56 billion in 2012 – a dip on the 2011 figure of around £5.25 billion in 2011 but higher than Iata’s forecast for this year made in June 2012.
Iata’s forecast for Europe will intensify UK airlines’ call for a reduction or scrapping of the UK’s Air Passenger Duty (APD) airport departure tax which has increased steadily since its introduction in 1994.
Speaking in Singapore, Iata director general and chief executive Tony Tyler said: “Aviation has an important role to play as the global economy struggles. Growth is the only way forward and a healthy aviation industry can stimulate that – linking stagnating developed economies to robust emerging markets.
“Aviation connectivity spurs growth at both ends. That is why it is important for governments to ensure aviation’s ability to be a catalyst for growth is not constrained.
“Unfortunately, in many parts of the world, it is an uphill struggle with high taxes, onerous regulation and insufficient infrastructure. All of this stunts industry growth to the detriment of the world economy.”
Latest posts by Sally - Silversurfer's Editor (see all)
- Win a prize bundle from Kennedy Wild Bird Food Ltd worth £150 - December 1, 2020
- SAVE £27 on six great wines from around the world - December 1, 2020
- Win £100 voucher to spend with Padders! - December 1, 2020
- André Rieu – 6 Fantastic Festive Releases from the Dutch Maestro - November 30, 2020
- Instantly transform your home with McAlister Textiles - November 30, 2020
Leave a Comment!
Community Terms & Conditions
These content standards apply to any and all material which you contribute to our site (contributions), and to any interactive services associated with it.
You must comply with the spirit of the following standards as well as the letter. The standards apply to each part of any contribution as well as to its whole.
be accurate (where they state facts); be genuinely held (where they state opinions); and comply with applicable law in the UK and in any country from which they are posted.
Contributions must not:
contain any material which is defamatory of any person; or contain any material which is obscene, offensive, hateful or inflammatory; or promote sexually explicit material; or promote violence; promote discrimination based on race, sex, religion, nationality, disability, sexual orientation or age; or infringe any copyright, database right or trade mark of any other person; or be likely to deceive any person; or be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence; or promote any illegal activity; or be threatening, abuse or invade another’s privacy, or cause annoyance, inconvenience or needless anxiety; or be likely to harass, upset, embarrass, alarm or annoy any other person; or be used to impersonate any person, or to misrepresent your identity or affiliation with any person; or give the impression that they emanate from us, if this is not the case; or advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
Nurturing a safe environment
Our Silversurfers community is designed to foster friendships, based on trust, honesty, integrity and loyalty and is underpinned by these values.
We don't tolerate swearing, and reserve the right to remove any posts which we feel may offend others... let's keep it friendly!