Airline profits are set to take a hit from the rise in oil prices and other increasing costs this year. The International Air Transport Association, a global industry group, has slashed its forecast for total profits for the global airline industry in 2018 by 12%. Related: $70 oil will create headaches for these companiesThat's the result of strengthening crude oil prices over the past year, which have been pushed higher by a booming global economy, production cuts by OPEC and increased geopolitical tensions. Related: China to overtake US as largest air travel marketIATA forecasts that demand for air travel among passengers will rise by about 7% this year, slightly slower than the rate of growth in 2017. North America remains the most profitable region for air travel, followed by Europe and then Asia, the group said.

Source: CNN June 04, 2018 06:22 UTC