IATA: Recent political shocks could have easily affected aviation operating environment
IATA chief economist Brian Pearce, speaking at the CAPA-ACTE Global Summit, stated (12-Oct-2017) recent "political shocks" could have "easily" affected the current positive operating environment in the global airline industry. Mr Pearce noted the rise of alternative political parties in developed economies, stating populist pressures have potential to disrupt the industry. Mr Pearce however said other factors have driven past uncertainty, which was not initially expected by IATA. Mr Pearce outlined key drivers including strong business confidence, emerging tourist flows from China and big exchange rate shifts. The shifts "made the US less competitive", while enabling struggling economies such as Brazil "come out of recession".