The International Air Transport Association now expects global airlines to post $3.5 billion in 2012 profits, down from its previously forecast $4.9 billion.

IATA maintained its 2011 profit forecast of $6.9 billion. "The eurozone crisis puts severe downside risk on the 2012 outlook," according to IATA. European carriers next year are expected to collectively post a $600 million loss, while North American carriers are forecast to earn $1.7 billion. Meanwhile, Asia/Pacific carriers are forecast to post $2.1 billion in 2012 profits, as Middle East carriers net $300 million and Latin American carriers earn $100 million, according to IATA's outlook. African carriers, meanwhile, are expected to post $100 million in losses next year.