SYDNEY (Reuters) - Global airlines and aviation executives warned on Sunday about growing international trade tensions, saying they could damage the airline industry and the world economy.
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.
Alexandre de Juniac, director general of the International Air Transport Association (IATA), which represents most of the world’s main carriers, said he was very worried, highlighting that the industry relied on open borders for the movement of goods and people.
“Any measures that reduce trade and probably consequently limit passenger travel are bad news, not only for the global economy, but it’s very bad news for this industry,” he told Reuters on the sidelines of IATA’s annual meeting in Sydney.
The uncertainty could dampen demand for the business travel, a key driver of profits for the airline industry, Gloria Guevara Manzo, chief executive of the World Travel and Tourism Council (WTTC).
“(Business travelers) 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 said.
