Association of European Airlines members during the first half of 2012 recorded a 3.4 percent increase in total passenger numbers

versus the year-earlier period. Comprised of 33 "network carriers," AEA noted that comparisons to the first six months of 2011 are affected by last year's political turmoil in North Africa and the Japanese earthquake and its aftermath. "European network carriers face a paradox as the air travel growth strongly contrasts the financial situation," according to AEA. "Passenger numbers throughout the first two quarters of the year showed a continued but moderate growth but, as in 2011, airlines are not able to offset the high rise in fuel and external costs. The market is clearly not able to absorb higher fares due to the challenging situation of the European economies." The association now projects that members in aggregate this year will post a €1.5 billion pre-tax loss.