The International Air Transport Association released figures recently that show it expects profits among its member airlines and air cargo carriers to fall precipitously this year compared to its previous forecasts. That is for the most part, the association says, to rising oil prices. Along with that, problems with the EU economy could dampen passenger and cargo demand. Management at Emirates, one of the world’s largest carriers, painted an even more bleak picture. In an interview with Bloomberg, Tim Clark, the CEO of the Dubai based airline said “We can reel off a whole load of airlines that are teetering on the brink or are really gone. Roll this forward to Christmas, another eight or nine months, and we’re going to see this industry in serious trouble.”

The AMR bankruptcy make be followed by other shortly. And, there is likely to be more consolidation like the United Air merger with Continental in the hope of cutting costs

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