Aviation groups say turbulence likely for 2012

Top commercial airline bodies have said 2012 is likely to be a difficult year for the industry.

Travel Insurance News - 01/03/2012

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A statement released Wednesday by the International Air Transport Association (IATA), which represents more than 90 per cent of all international carriers, ongoing financial turmoil in the eurozone coupled with rising fuel costs would continue create major problems for air carriers this year. Officials also said the situation would likely mean a cutback on flights as well as higher fares.

Similarly, Europe’s air traffic control body, Eurocontrol, said that it was now projecting traffic to decline this year by 1.3 per cent after earlier predicting growth of 2.5 per cent over the 12-month period. Eurocontrol oversees nearly 40 per cent of all cargo and passenger routes worldwide.

But the news came despite the IATA reporting a 5.7 per cent year-on-year increase in passenger figures for all international routes in January – a month that is typically one of the busier times of the year. However, the industry body also said that air cargo volume, which is typically indicative of the industry’s health, had fallen by 8 per cent during January compared to the same month one year prior.

Tony Tyler, director general of the IATA, said that despite the decline in cargo activity that it was now showing signs of stabilising.

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