High oil prices, slumping U.S. Economy expected to hit global airline industry

High oil prices and the slumping U.S. economy are expected to hit the global airline industry harder than originally expected next year, according to a forecast issued yesterday by the International Air Transport Association (IATA). IATA, which represents 240 of the world's leading airlines, said it expects the airline industry's collective earnings to dip to US$5-billion in 2008, after a projected profit of US$5.6-billion this year. In 2006, the industry reported a collective loss of US$500-million. "For the first time since 2000, we are profitable. That is good news," said Giovanni Bisignani, IATA chief executive, above, in a statement "The challenges get tougher in 2008."

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