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Global airlines slash profit forecast 21% on protectionism fears
SEOUL (Reuters) - Global airlines slashed a key industry profit forecast by 21% on Sunday amid concerns over an expanding trade war and higher oil prices.
The International Air Transport Association, which represents about 290 carriers or more than 80 percent of global air traffic, said the industry is expected to post a $28 billion profit in 2019, down from a December forecast of $35.5 billion.
“Airlines will still turn a profit this year, but there is no easy money to be made,” IATA Director General Alexandre de Juniac said at the group’s annual meeting in Seoul. “Creeping protectionist or isolationist political agendas are on the rise,” he added.
Airline profits help detect trends for consumer confidence and global trade, economists say.
Global stock markets fell on Friday after U.S. President Donald Trump on Friday threatened tariffs on Mexican goods, adding to fears that escalating trade wars will push the U.S. and other major economies into recession.
Airlines had reported $30 billion in annual profits in 2018, but conditions in the air cargo market - an extra source of revenue for carriers - have weakened substantially.
“You see that international trade is now at a zero growth rate, so there is an immediate impact on our cargo business,” de Juniac told Reuters TV.
IATA voiced concerns that trade tensions that have forced several carriers to ground air freighters could spill into the passenger market.
Passenger capacity growth, which reached 6.9 percent in 2019, is forecast to slow to 4.7 percent this year, with average fares flat following a 2.1 percent decline in 2018.
https://www.reuters.com/article/us-airlines-iata/global-airlines-slash-profit-forecast-21-on-protectionism-fears-idUSKCN1T300F
you mean he's not already?
pretty quiet in the sky's… even low commercial traffic.
Airbus urges airlines to pressure Boeing over subsidy row
SEOUL (Reuters) - Airbus has written to airline leaders to appeal for their backing in a trade dispute with rival Boeing, warning of higher aircraft prices and passenger fares if the United States and European Union descend into a tariff war.
The appeal was issued in a letter to several airline bosses meeting in Seoul where the International Air Transport Association has warned of the impact of broader global trade tensions, a person familiar with the issuance of the letter told Reuters.
The United States and Europe have been locked in a 15-year spat over mutual claims of illegal aid to plane giants.
U.S. President Donald Trump threatened last month to impose tariffs on $11 billion of European goods including planes and their parts, prompting the European Union to propose a list of $20 billion worth of U.S. imports it could hit in retaliation.
“If the tariffs are applied, the effects would include greatly increased costs to U.S. and European airlines, aerospace suppliers and manufacturers,” Airbus sales chief Christian Scherer said in the text of the letter seen by Reuters.
It asked airlines to “urge Boeing to enter into the negotiations proposed by the EU and Airbus.”
Airbus and Boeing had no immediate comment.
It is the first time either company has sought to directly involve the airline industry in the dispute, which is the largest ever handled by the World Trade Organization. U.S. carrier Delta Air Lines has said it opposes the U.S. tariff threats, saying they harm U.S. interests.
Delegates at the IATA talks said airlines would weigh carefully whether to step directly into the aircraft dispute which has laid bare intense competition for plane orders and which has cost the warring parties tens of millions of dollars.
But IATA, which groups 290 airlines representing 82 percent of global traffic, is expected to express growing concerns about a worsening pattern of global trade tensions which has already depressed cargo business and threatens some passenger demand.
https://www.reuters.com/article/us-airlines-iata-trade-airbus/airbus-urges-airlines-to-pressure-boeing-over-subsidy-row-idUSKCN1T3008?
np, can do it on the weekends.
see no military at all, even reset the filters. Been quiet in my neck of the woods visually-when you don't hear/see them you notice it.
o7
funny you mention that. Was in puerto vallarta when the air shit started with that-no access obviously-and ordered a big bottle-spouse and I finished it. Quite the show that was. Have some mil knowledge, but defer to the obvious pro's when needed. Learned much last summer tracking the no-call commercials from south america/mexico,plus where I live it's hard not to pay attention. Much activity on a daily basis but been fairly quiet there too.
what habbens to this is the key. So much crap debt sperged into the system they need to deal wit it. The good/badbank solution they keep offering as a solution will not work. The bond credit protection on all of these products tied to the share price of DB have been blowing out for the last few weeks.
a quick email or phone call does it. I see all of it, in and out of mir-got a great pair of binocs and watch regularly. Get the freedom boner all the time. Osprey's a few times a week heading out to 29, plenty of F-15/18's in pairs plus the odd g4/5/6-think that's what they are.
too many variables to make a good educated guess. Many things not known. They spent trillions managing the silver price via the comex pricing mechanism however that is mostly paper. If I had to guess it would be well north of the current price but it all depends on where the pricing of both go. The official numbers on who has the most gold never list saudia arabia in them so when we figure out what they have and what will be done wit that supply the picture will be easier. The new bretton-woods agreement has an action date of sept 30th of this year so as said way too many things to factor that are unknown