IATA warns oil prices could erode industry profits

IATA Director General and CEO, Giovanni Bisignanni, cautioned that if oil prices remain at current levels, airline costs will increase by more than the projected earnings for 2011, threatening the industry's return to profitability (Bloomberg, 02-Jan-2011). IATA forecast in Dec-2010 that airlines would achieve a net industry profit of USD9.1 billion, at an average oil price of USD84 per barrel.