European airlines profits expected to fall 26% this year

The International Air Transport Association is forecasting the net profit of European airlines to drop from $13bn last year to $9.6bn this year, with profit per passenger declining from $10.30 to $7.50

Director general of the IATA Willie Walsh said war-related disruptions and rising fuel costs 'have shifted the outlook for airlines to the worse'.

The combined net profits of European airlines are expected to see a 26% decline during this year, the International Air Transport Association (IATA) has warned, as they are “highly reliant” on Gulf countries for jet fuel and are facing “significant cost pressure”.

In its latest financial outlook for the sector, the IATA said that some of the jet fuel costs are “mitigated thanks to a pre-crisis hedging ratio of 70% of its fuel needs, higher costs will feed through as hedges roll off”.