IATA expecting lean profits

The aviation industry is not expecting to make a big profit in 2013 due to high oil prices.

The aviation industry is not expecting to make a big profit in 2013 due to high oil prices.

CAPE TOWN - The International Air Transport Association (IATA) predicts lean profits in 2013 due to high oil prices.

The association's CEO Tony Tyler addressed the Cape Town Press Club on Thursday.

At least 84 percent of the world's airlines belong to the regulatory body which is responsible for the safe transportation of three billion passengers and 50 million tons of cargo annually.

Tyler said a third of an airline's budget is spent on fuel, but in Africa it accounts for 44 percent as fuel levies and taxes.

IATA does negotiate with governments on the continent.

However, Tyler said it was tough to convince some authorities that collecting fewer taxes was more beneficial to the economy in the long-term as airlines are viewed as soft targets for revenue collection.

Nearly 60 million people are employed in the industry globally and 230,000 jobs are linked to aviation in South Africa.