IATA CEO Expresses Concern About Escalating Trade Tensions

The video discusses the impact of trade tensions between the US and China on airlines, focusing on cargo traffic and passenger demand. It highlights the influence of tariffs on specific goods like car parts and semiconductors. The uncertainty from trade disputes affects business travel and tourism, impacting airline revenues. Rising oil prices significantly affect airline profitability, especially in regions like India, where currency depreciation exacerbates the issue. Despite these challenges, airlines have not yet passed increased costs onto consumers, maintaining competitive pricing.

How does uncertainty in trade impact passenger demand?

What factors influence the decision of airlines to pass on oil price increases to consumers?