Iata cuts its airline profits forecast on high oil cost

The high price of oil is taking its toll on the global airline industry.

The International Air Transport Association (Iata), which represents the world's largest airlines, says it expects profit margins to be "pathetic" this year.

Iata is downgrading its 2011 outlook to $8.6bn from the $9.1bn it estimated in December 2010.

This is a 46% fall in net profits compared to the $16bn earned by the industry in 2010.

Chris Tarry is an Independent Aviation Analyst and he told the BBC ''In Europe we're seeing a pretty dull outlook''.

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