DOHA (Reuters) - Concerns over China’s economic growth and political risks have prompted the airline industry to trim $700 million (418 million pounds) off its global profit forecast for 2014, the International Air Transport Association (IATA) said on Monday.
The Geneva-based organization now expects airlines to make a profit of $18 billion this year, down from $18.7 billion in its previous forecast in March, but the economic prospects are expected to improve as the year progresses.
World trade has slowed since March, and business confidence has fallen with concerns over China’s economic growth, IATA said in a statement released at its annual general meeting in Doha.
The global airline industry faces strong headwinds from rising infrastructure costs, inefficiencies in air traffic management, a heavy tax burden and costly regulation, IATA Director General Tony Tyler said.
(Reporting by Tim Hepher; Writing by Praveen Menon; editing by Jane Baird)