IATA warns over oil price risk

IATA chief economist Brian Pearce cautioned that if oil prices reached the USD130-150 per barrel range airlines would likely see losses similar to those in 2008 (Bangkok Post, 09-Jun-2011). That price level is unlikely according to Mr Pearce, but the risk of it cannot be completely dismissed. IATA's current oil price forecast for 2011 is for an average of USD110 per barrel. IATA recently revised its global airline profit forecast for 2011 down from USD8.6 billion to USD4 billion.