SYDNEY (Reuters) - Trade tensions could dampen economic growth and have a negative impact on travel demand, especially for lucrative business travel that drives airlines’ profits, aviation industry executives said on Sunday.
FILE PHOTO: The International Air Transport Association (IATA) logo is seen at the International Tourism Trade Fair ITB in Berlin, Germany, March 7, 2018. REUTERS/Fabrizio Bensch
The Trump administration has renewed tariff threats against China, while key U.S. allies Canada, Mexico and the European Union have been hit with duties on steel and aluminum.
“When you have these situations going on with world trade it’s sending a message that is impacting business travelers for sure,” Gloria Guevara Manzo, chief executive of the World Travel and Tourism Council (WTTC), told Reuters at a major gathering of aviation executives in Sydney.
“They need to wait and see what happens – will their business be impacted, do they need to diversify, go some other places. War in trade is not good,” she added.
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(2 Images)Planemakers Boeing (BA.N) and Airbus (AIR.PA) echoed that the uncertainty was negative for business and highlighted that free trade helped to drive economic growth, creating jobs. “It brings down costs to consumers and creates jobs both with our partners as well as at our company,” Boeing Commercial Airplanes marketing vice president Randy Tinseth told Reuters. Airbus said the aviation industry existed because people were able to travel freely and markets were open. “We are in a worldwide industry here. We see it in a negative way because it is putting borders and putting constraints for everybody, including our customers,” Airbus Chief Commercial Officer Eric Schulz told reporters. Asked about the impact on tariffs on its business, Boeing’s Tinseth said it would notRead more from our friends at Reuters:
