The International Air Transport Association (IATA) said on Tuesday that it had cut its profit forecast for the airline industry because of the slow down in the global economy and high oil prices.

Giovanni Bisignani, director general of IATA said, We still expect a positive bottom line of $4.5 billion (2.27 billion pounds), but it's turning out to be a very tough year.

IATA last cut its forecast in December 2007 down to $5.0 billion.