Global airlines slash profit forecast on fear of protectionism

Taking a hit: People walk past IATA banners during the IATA annual general meeting in Seoul. IATA says the industry is expected to post a US$28bil profit in 2019, down from a December forecast of US$35.5bil. — AFP

SEOUL: Global airlines slashed a widely watched industry profit forecast by 21% as an expanding trade war and higher oil prices compound worries about an overdue industry slowdown.

The International Air Transport Association (IATA), which represents about 290 carriers or more than 80% of global air traffic, said the industry is expected to post a US$28bil profit in 2019, down from a December forecast of US$35.5bil.