17 May 2012 22:04 [Source: ICIS news]
CHICAGO (ICIS)--Airlines are expected to increase their demand for jet fuel in 2012, despite threats from the global economy, an economist said on Thursday.
According to Brian Pearce, chief economist with the International Air Transport Association (IATA), the IATA expects airlines to slightly trim capacity growth in 2012, and the airlines’ 2012 demand for jet fuel will grow 1-2% over 2011.
Pearce said the airline industry’s performance has moved in line with economic growth for the past 40 years, and airlines are performing moderately well this year.
But there are still major threats, such as the fiscal crisis, geopolitical conflict and volatile energy pricing, which could impact the airline industry in 2012.
“We are in a fragile environment with high oil prices and a softened global economy,” he said while speaking at the IATA’s Aviation Fuel Forum. “So you would expect the industry to be having a tough time. But airlines are not doing so bad.”
This is in part due to growing demand in the Asia Pacific region, and according to Pearce, this growth is strong in business passengers, a sign of a strengthening economic.
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