Brussels, 07/12/2011 (Agence Europe) - The aviation sector cannot conceal its anxiety at developments in the eurozone crisis and the possible serious repercussions on airlines. The International Air Transport Association (IATA), whose 240 member companies account for 84% of global air traffic, is speaking of losses equivalent to $8.3 billion in 2012 if there were to be a banking crisis in the European Union. IATA bases its forecasts on a worst-case scenario developed from the latest Organisation for Economic Cooperation and Development (OECD) economic outlook which carried a risk assessment on the European sovereign debt crisis.
A fall of such magnitude would compare with what aviation experienced after the 2008 financial crisis. “The biggest risk facing airline profitability over the next year is the economic turmoil that would result from a failure of governments to resolve the eurozone sovereign debt crisis”, said IATA Director General Tony Tyler. European aviation would, of course, be worst affected, with losses of up to $4.4 billion. Thereafter would come North America ($1.8 billion) and the Asia-Pacific region ($1.1 billion). (MD/transl.rt)