''It's very disappointing, especially the extent of the decline for the international business,'' said Peter Esho, chief market strategist at City Index. ''That's the one part of the company that's holding it back.'' Qantas' warning underlines the global aviation sector's struggles as high oil prices and sagging demand due to the European economic crisis take their toll. The International Air Transport Association has downgraded its forecast for airline profits in 2012 to $3 billion from $3.5 billion, and has said that a further economic downturn could see a net loss for the sector. Loss-making international business Qantas said its international business was seen posting a loss in earnings before interest and tax (EBIT) of more than $450 million in 2011-12, compared with a $216 million loss a year ago. The domestic operations EBIT was seen at over $600 million, up from $552 million in the previous financial year.