GENEVA — Global aviation earnings will probably decline to $3.5 billion in 2012, but those could turn into steep losses exceeding $8.3 billion if the eurozone crisis veers toward catastrophe, the industry’s trade group said Wednesday.
For 2011, the industry says it anticipates that surging oil and fuel prices will clip profits at $6.9 billion — less than half of its $15.8 billion in 2010 profits.
The International Air Transport Association’s annual review focused on Europe’s debt crisis, which is threatening the global economy. The Geneva- based trade group called the gloomy economic outlook challenging for aviation throughout the world, despite strong growth in Asia.
For European airlines, “the only open question is how deep” the losses will be next year, the association’s chief executive, Tony Tyler, told reporters in Geneva.
