IATA survey: Air executives' confidence declining

In its July poll of executives across 230 airlines, the IATA said about 70 percent of respondents expect profitability to decrease in the next 12 months, while only 10 percent expect it to improve.

High fuel prices remain the top worry among airline executives, the IATA said, but others fear the ripple effects of slumping demand.

"Any weakening of demand will reduce the ability of airlines to offset the impact of high fuel costs through improved revenue," the report said.

Only a quarter of respondents reported increased profitability in the second quarter, the IATA said, mainly due to rapidly accelerating fuel costs.