The International Air Transport Association (IATA) has been forced to slash the 2011 profit outlook for the industry as a result of high oil prices, natural disasters and political turmoil.

According to IATA's latest forecast, the global air travel sector will report profits of US$4bn (£2.4bn) this year - a 54 per cent decline on the association's March prediction. The revised figure will also represent a 78 per cent drop on the US$18bn (£11bn) net profit recorded in 2010. Expected sector revenues for the year will lead to a 0.7 per cent margin.

IATA director general and CEO Giovanni Bisignani said: "Natural disasters in Japan, unrest in the Middle East and North Africa, plus the sharp rise in oil prices have slashed industry profit expectations to US$4 billion this year. "The efficiency gains of the last decade and the strengthening global economic environment are balancing the high price of fuel. But with a dismal 0.7 per cent margin, there is little buffer left against further shocks."

Image: shutterstock.com/Ian Edward Schofield