Airline woes to worsen if fuel costs stay high and purchasing power declines: IATA chief economist

IATA Chief Economist warns that airline difficulties will intensify due to sustained elevated fuel prices and diminishing consumer buying strength. Stronger financially positioned airlines are projected to perform better in this challenging environment, but there is a constraint on their ability to increase ticket revenues. The situation is expected to deteriorate further as long as fuel costs remain exceptionally high, requiring significant operational innovation from carriers. Airlines face considerable pressure to implement extraordinary measures to maintain profitability amidst these headwinds. Ultimately, the prolonged high-fuel price scenario poses substantial risks for the entire aviation industry.