Profit warning

The Spanish Association of Charter Airlines said yesterday that their members' profits would be down this year because “they had concentrated too much on the tourist trade” and due to rising fuel costs. The association which consists of 25 airlines said that although revenue had increased, operating costs were higher. Some airlines have been forced to increase the price of their fares because of escalating fuel costs. Palma airport this summer has handled a record number of aircraft, many of which belong to this association but the airlines industry is not particularly buoyant at the moment. The association also fears that the recent mergers and take-overs of the major tour operators will result in less work for their members. Many Spanish airlines are employed by British and German tour companies.