Business

IATA Says Rising Fuel Costs Mean Sharp Fall in Airline Profits

The International Air Transport Association (IATA) further downgraded its 2011 airline industry profit forecast to $4 billion. This would be a 54 percent fall compared with the $8.6 billion profit forecast in March and a 78 percent drop compared with the $18 billion net profit (revised from $16 billion) recorded in 2010. On expected revenues of $598 billion, a $4 billion profit equates to a 0.7 percent margin.

Ryanair’s Michael O’Leary Calls for Hotel Tax

Ryanair chief executive Michael O’Leary has called for taxation to be switched from airline to hotel rooms to sustain Britain’s tourism economy, in a move that would mirror the United States policy.

U.S. Travel Association Reports Travel Jobs Down 3,000 in May

The U.S. Travel Association reported that employment in the travel industry in May 2011 was down 3,000, the first monthly decline in six months. Nevertheless, over the past year travel jobs actually increased by 107,200, which accounted for 12.3 percent of the 873,000 U.S. jobs added overall during this period.

TUI Travel to Buy Magic Life

Further to the announcement of TUI Travel PLC’s interim results on 10 May 2011 which stated that TUI Travel intended to acquire the operating companies that lease and manage the Magic Life clubs, TUI Travel is pleased to announce that it has reached agreement with TUI AG and its subsidiary undertaking, Magic Life GMBH & Co KG, for the Group to acquire six separate operating companies through which Magic Life leases and manages 13 holiday clubs in Turkey, Tunisia, Egypt, Greece and Spain.

Anschutz Unit Closes on Windstar Cruises Purchase

Xanterra Parks & Resorts, Philip Anschutz's Greenwood Village-based tourism business, says it has completed the purchase of Windstar Cruises. The acquisition follows the U.S. Bankruptcy Court 's recent approval of sale of the assets of Ambassadors International Inc., which filed for Chapter 11 reorganization on April 1.

STR Reports Slight Growth in Caribbean, Mexico Hotel Pipeline

The Caribbean/Mexico hotel development pipeline comprises 134 hotels totaling 20,296 rooms, according to the April 2011 STR Construction Pipeline Report. “The Caribbean/Mexico region has 37 projects under construction that are expected to open by year-end 2011,” said Lana Yoshii, vice president of content management at STR.