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|Tuesday, March 20, 2012|
The global aviation industry could lose over $5 billion this year if oil prices spike, according to the industry's trade group.
The International Air Transport Association, or IATA, says it now expects earnings will likely decline to $3 billion in 2012. That's down from December's forecast of $3.5 billion, based on an expectation that oil prices will average $115 a barrel. At present, the benchmark New York rate is trading at nine-month highs around $107 a barrel.
Tony Tyler, IATA's chief executive, said the industry's diminished profit forecast for 2012 could turn to losses of more than $5 billion if oil prices spike to $150 a barrel due to Western tensions with Iran.
Read more at OregonLive.com.
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