Economic uncertainty, freight weakness and financing requirements weigh on the airlines: IATA

Weakening consumer confidence and economic uncertainty is placing further pressure on the world's airlines and their investors. Airline share prices have taken a battering amid renewed economic concerns and representing a large downward revision in financial market expectations for airline profits. Jet fuel prices, while down from their Apr-2011 peak, continue to pressure the sector, according to IATA, while a slowing in travel volumes and slumping freight demand are also of concern. A continued influx of new aircraft is also driving continued capacity expansion, potentially impacting yields and load factors, and creating significant financing yields in an economically-weak environment.