SKY-HIGH fuel prices have hit the profits of the world's airlines though Europe's carriers recovered after suffering last year from a volcanic ash cloud that brought traffic to a standstill, the industry's main lobby group said yesterday.

The International Air Transport Association said early results from a sample of airlines globally show they will post US$1.04 billion in profits for the second quarter of 2011, a big drop from the US$2.88 billion in profits for the same period a year ago.

The sample is too small as yet to come to clear conclusions but Asian airlines appear to have been under the most pressure, whereas European airlines have improved operating profits (partly because second-quarter 2010 results were hit by the ash cloud last year), according to the Geneva-based group.

Another bright spot for airlines is that air travel volume overall looks to be rising at 4-5 percent a year, IATA said.

Source:shanghaidaily