Airlines On Track For Worst Year Since 2014
AIRLINES ARE ON PACE FOR THEIR WORST YEAR SINCE 2014
(CNN) – Major airlines are on-pace for their worst year since 2014
The aviation industry expects to earn $28 billion in profit this year.
That’s according to a forecast released Sunday by the International Air Transport Association.
But that is 21% lower than the association’s previous forecast, issued in December.
It would be the lowest profit the industry has recorded in five years.
Some factors affecting the industry are: high fuel prices, an international trade war, and the 737 Max grounding.
Oil prices, which have risen in recent months as tensions escalate between the United States, Iran and Venezuela.
Jet fuel accounts to a quarter of airlines’ operating costs.
The International Air Transport says said jet fuel will cost 27.5% more this year than it did two years ago.