Airlines warn over weakening of global trade rules
NEW DELHI: The head of a global airlines industry body warned on Monday of damage to the economy and the air travel sector from growing trade barriers.
"Like all forms of connectivity, flying makes the world more prosperous," International Air Transport Association (IATA) Director General Willie Walsh said at the group's annual meeting in New Delhi.
"That stands in contrast to isolationism, trade barriers and the fragmentation of the multilateral rules-based system. These destroy wealth and lower living standards. For the times we live in, this is an important message," he said.
IATA shaved a key forecast for 2025 industry-wide profits on Monday, blaming trade tensions and declining consumer confidence, while hitting out at "unacceptable" delays in jetliner deliveries that have hindered their growth plans.
Sweeping tariffs imposed by U.S. President Donald Trump have stoked fears of an economic slowdown and squeezed discretionary spending, prompting many consumers especially in the United States to delay or scale back travel plans.
They also threaten a decades-old pact between more than 30 countries to eliminate duties on aircraft and their parts.
Walsh called for governments to "keep aerospace out of trade wars".
IATA represents some 300 airlines accounting for more than 80% of global traffic. - Reuters
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