Between the mounting eurozone financial crisis and ever-escalating fuel prices, European airlines are having a tough time making ends meet. Just this year so far, European carriers are facing $1.1 billion in losses.
Hungarian carrier Malev, which recently filed for bankruptcy protection, is just one airline that’s already succumbed to razor-thin profit margins. With rising gas prices and Europe falling into a deeper recession, it’s likely more airlines will follow.
The $1.1-billion operating loss is twice what the International Air Transport Association projected for the month of March.
While European airlines struggle, Asian airlines are poised to bring in $2 billion in revenues thus far in 2012.