IATA says world economy very uncertain, but sees no recession

Reuters: The International Air Transport Association (IATA) said on Tuesday that the outlook for the global economy is very uncertain, but it does not expect a recession.

“There is so much uncertainty over the world economy, obviously in Europe and United States,” said IATA Director General and Chief Executive Tony Tyler at a media briefing in Hong Kong.

Earlier this month, IATA forecast a 29 percent decline in 2012 industry-wide profit to $4.9 billion on the back of a weak global economy and stubbornly high jet fuel prices.

The group, whose 230 members carry more than 93 percent of scheduled international air traffic, revised up its earnings forecast for the industry to $6.9 billion this year from a $4 billion forecast it made in June.