“Higher oil price will force airlines go bankrupt”
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Airbus A380.
Airline organization IATA warns that several airlines will be forced to file for bankruptcy if the oil price reaches $150 dollar per barrel. Today oil trades around 120 dollar.
“We can not exclude the possibility that some file for bankruptcy, all regions will lose. The biggest losses will be in Europe, but there will be noticeable effects everywhere”, says IATA chief Tony Tyler to news agency AFP.
IATA estimates that airlines will deliver a combined net result of $3.0 billions for the full year, down from 3.5 billions last year.
“2012 continues to be a challenging year for the airline industry”, Tyler says.
→ More on the airline industry: Survival of the fittest, as competition heats up
