Oil price downs airlines

SURGING oil prices are forecast to dent airlines’ profits and could significantly hurt their bottom lines next year, the boss of airline industry group IATA warned.

Oil has been trading at 3.5year highs recently amid concerns about supply disruptions.

The International Air Transport Association (IATA) is set to release a lower profit forecast for the global airline industry at its annual meeting in Sydney next week, with rising fuel costs a key factor.

IATA in December tipped record industry profits of more than US$38 billion for this year when the price of a barrel of crude was at US$60.

Since then, the price has steadily risen towards US$80, prompting the revised outlook.