Aviation on a ‘thin tight-rope’; airline profits to slump in 2011 as fuel costs rise

The aviation industry is balancing on a “very thin tight-rope” and there is a “very little buffer for the industry to keep its balance as it absorbs shock”, IATA CEO Giovanni Bisignani stated as the association downgraded its profit forecast for 2011. He also noted the “structural weakness” of the “fragile” aviation industry, which has a historical profit margin of just 0.1%.

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