IATA takes cautious view on Future Prospects

Speaking on the first day of Outlook 2007 in Singapore last week, Chief Economist at the International Air Transport Association, Brian Pearce, told the assembled aviation leaders that cyclical and structural challenges remain and threaten future profitability, especially in this region. “Asia is starting to fall behind,” he observed, showing that Europe’s carriers’ financial performance had surpassed that of their Asia Pacific counterparts.

The global trade group, which represents the interests of 270 airlines from 143 countries, highlighted the role of fuel on future success, noting that Asian carriers have done much less to limit their exposure to price fluctuations than airlines elsewhere have, something that could hurt them moving forward. “Oil prices have dropped, but fuel market pricing remains highly vulnerable to supply and political shocks,” he warned.

Outlook 2007 is the Centre for Asia Pacific Aviation’s annual examination of the prospects for the Asia Pacific airline industry. Convening in Singapore with the participation of 30 CEOs and 380 vital stakeholders from all components of the aviation sector, Outlook 2007 and the CAPA Aviation Awards for Excellence provides a forum for dialogue between leaders from the airline, airport, supplier and regulatory communities.

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