Middle East unrest upsets aviation sector

March 5th, 2011 - 12:58 am ICT by IANS  

Abu Dhabi, March 4 (IANS/WAM) The aviation industry is concerned over rising fuel prices triggered by the political turmoil in some oil-rich countries in the Middle East.

Several oil-producing countries, including Bahrain, Jordan and Oman, have been witnessing anti-regime protests in the past couple of months.

A wave of mass uprisings swept through the Middle East soon after weeks of unrest toppled the long-serving regime in Tunisia Jan 14.

The International Air Transport Association (IATA) has downgraded the airline industry outlook for 2011 to $8.6 billion from the $9.1 billion it estimated in December 2010.

“Political unrest in the Middle East has sent oil over $100 per barrel. That is significantly higher than the $84 per barrel that was the assumption in December,” said Giovanni Bisignani, IATA’s Director General and CEO.

“At the same time the global economy is now forecast to grow by 3.1 percent this year - 0.5 percentage point better than predicted just three months ago. But stronger revenues will provide only a partial offset to higher costs”, he said.

The IATA represents some 230 airline companies which operate 93 percent of international air traffic.

–IANS/WAM
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