On the first day of the Centre for Asia Pacific Aviation?s (CAPA) ‘Outlook 2007’ conference in Singapore IATA has warned that Asian airlines are starting to fall behind Europe in profitability terms.

International Air Transport Association (IATA) Chief Economist Brian Pearce told the assembled aviation leaders that cyclical and structural challenges remain and threaten future profitability, especially in the Asia Pacific region.
?Asia is starting to fall behind,? he observed, showing that Europe?s carriers? financial performance had surpassed that of their Asia Pacific counterparts.
The global trade group, which represents the interests of 270 airlines from 143 countries, highlighted the role of fuel on future success, noting that Asian carriers have done much less to limit their exposure to price fluctuations than airlines elsewhere have, something that could hurt them moving forward.
?Oil prices have dropped, but fuel market pricing remains highly vulnerable to supply and political shocks,? he warned.
Outlook 2007's central thrust is the annual examination of the prospects for the Asia Pacific airline industry and this year it has attracted an impressive 30 Ceos and 380 stake holders.