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Majority of Global Airlines See Profits Fall in Fourth Quarter

Majority of Global Airlines See Profits Fall in Fourth Quarter

Profits declined at 63 percent of global airlines last quarter and chief executive officers at many of these companies are pessimistic about profitability over the next twelve months, according to the International Air Transport Association's (IATA's) Airline Business Confidence Index.

This latest installment of the index highlighted the increasing negativity among those holding executive jobs with airlines, with 52 percent anticipating a profit decline over the next year. The increasing pessimism is highlighted by the fact that the IATA's previous poll in October saw only 33 percent of CFOs expecting a profit decline.

In terms of employment within the air travel industry, chief financial officers noted that the previous three months have seen a decline, with weak traffic expectations driving down employment forecasts into 2012, the survey noted.

According to Dow Jones Newswires, traffic and profit confidence projections have dropped to levels seen most recently in early 2009, during the depths of the recession when the airline industry was suffering substantially.

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