The global airline industry continues to face challenges in 2012, from rising costs fuel, in particular and economic uncertainties. The condition looks bleaker ahead with a weak outlook for Europe, given its financial problems. The International Air Transport Association (IATA) projects overall airline profits of $3.0 billion for 2012. This is down from the $3.5 billion projected last December and $4.9 billion projected in September. Moreover, the 2012 profit outlook is also below the estimated $7.9 billion in 2011 and $16 billion earned in 2010. This steep decline in the industry's profitability is a function of the overall unfavorable macro backdrop with which the industry must operate this year. Financial advisors should be aware of developments in the geographic location of where the commodities they invest in are produced. The reason being that prices are impacted by factors like weather conditions or when political turbulence in the region causes supply concerns and fuel prices.
Airline stocks
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