Geneva: The Eurozone crisis is turning out to be the biggest threat to the profitability of global aviation industry, with airlines in Asia-Pacific expected to post losses worth $1.1 billion out of a total industry loss of $8.3 billion next year, global airlines body IATA has said.
With the European sovereign debt crisis “deteriorating into a renewed banking crisis”, the International Air Transport Association (IATA) said in this scenario, the airlines in all the regions would fall into losses in 2012.
Europe would be expected to post the deepest losses at $4.4 billion, followed by North America at $1.8 billion and Asia-Pacific at $1.1 billion. The Middle East and Latin America would both be expected to post $400 million losses, while Africa would be $200 million in the red.
Given this scenario which is estimated to cut global GDP growth to 0.8%, “we estimate that this has the potential to cause global industry losses of $8.3 billion”, IATA’s chief economist Brian Pearce said here.