Airlines down 40 per cent

FOR the first time in eight quarters, airline profits have declined, with the exception of Europe, IATA said.

The world’s airlines posted a cumulative second-quarter net profit of US$2.32 billion, down 40 per cent from $3.71 billion in the year-ago period.

Notably, for the second quarter Asia/Pacific airlines posted the largest decline with a net profit of $648 million, down 56 per cent from $1.49 billion. By contrast, profits improved to $1.12 billion for the European airlines, up 9.4 per cent from $1.02 billion year-over year.

Global operating profit for the second quarter ended 30 June was $3.94 billion, down 43 per cent from $6.95 billion in the year-ago quarter.

The association said freight markets are increasingly challenging with falling yields and still high fuel costs increasing break-even load factors.

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