The airline industry is watching profits fall from the sky once again. High oil prices and a pessimistic economic outlook have obliged analysts to lower their earnings predictions by 10 billion euros over the next two years.
In less than six months, the twenty largest airline companies in the world (by stock market capitalization) have seen predicted earnings of 23.5 billion euros drop to a more conservative 13.3 billion euros.
Curiously, the top airline in terms of market cap, Singapore Airlines, is also the airline with the greatest cut to their earning prediction. It has been trimmed by 1.2 billion euros owed to the fact that the airline bet big on the next few years by expanding route coverage and planning on comprehensive and continual management of their fleet.
