The aviation industry reduces the profit outlook; cargo company damaged by trade war
Commercial air routes are located at the Southern California Logistics Airport in Victorville, California.
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SEOUL – Global Trade Tensions and Increased Protectionism Asked the International Air Transport Association (IATA) to reduce the aviation sector's outlook in 2019.
Speaking to CNBC at the Trade Group General Assembly, IATA Director-General and CEO. Alexandre de Juniac said that disturbances in international trade have damaged cargo, especially.
"It has significantly influenced our prospects, and it is clear that this halt in the development of international trade comes directly from trade war and protectionist measures," they said Juniac.
The industry's agency expects the company's profits to reach $ 28 billion by 201[ads1]9, down from the $ 30 billion reported in 2018. IATA had previously expected 2019 profits to enter $ 35.5 billion.
The intensification of the trade war between the US and China trade wars has seen the demand for cargo fall over the airline industry, with the downward trend expected to continue. Growth for this segment is expected to be flat this year, having increased 3.4% in 2018 and 9.7% the year before.
Growth View for China and India
Asia, which accounts for about 40% of global aviation traffic, is particularly vulnerable to global trade wars, but the Juniac said potentially strong passenger demand could negate any trade disruption region face.
"Asia is also very huge demand for growth. China, five years from now, [biggest] the world market, India in the next 8-10 becomes the third [biggest] market in the world," he says. we believe that passenger demand will not overcome, but perhaps compensate for the consequence of the cargo of the protectionist measures and trade wars. "
The global airline industry is starting its tenth year in profit,
De Juniac said that the work of the industry for Reducing costs and increasing competitiveness over the last decade will make it more resilient.
"I think this industry is significantly more resilient than it was before, and significantly less susceptible to the consequences of an economic downturn," he said "But if there is an economic downturn, this industry will suffer – but probably less than the case 15-20 years ago."
IATA represents 290 airlines or 82% of total air traffic. ontor in Montreal.
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