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The International Air Transport Association (IATA) warned of tough times ahead for the airline industry and the head of Thai Airways said on Tuesday financial market turmoil as the European and U.S. economies slow down was “‘frightening'”.

IATA has already warned that a weak global economy would prompt a 29-percent fall in airline profits in 2012 and cut the industry’s profit margins to a wafer thin 0.8 percent from 1.2 percent this year.

IATA, whose 230 members carry more than 93 percent of scheduled international air traffic, forecast global economic growth of 2.4 percent in 2012, lower than the International Monetary Fund’s projection of 4.0 percent.

source: foxbusiness.com

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