Airline earnings weaken in 2Q, shares down 15% so far in 2011: IATA

A deterioration in consumer confidence and a concerning economic outlook is placing further pressure on the world's airlines, with IATA warning of a possible slowdown in business travel. The association also noted that airline industry earnings suffered the first year-to-year decline for two years in 2Q2011, based on a small sample of airlines globally, while airline share prices have taken a battering, weakening 15% this year on economic concerns. Meanwhile, high jet fuel prices continue to pressure airlines, which are also now faced with a moderation in travel volumes, weakening load factors, softer utilisation rates and yields which are yet to recover to their pre-recession levels.