Read the short passage below and answer the following questions.

Airlines fasten safety belts!

Turbulence in the airline industry is now greater than ever. Analysts are cutting forecasts, with traffic volume expected to grow at just 2% this year as against 5.5% last year. The slowing down of the world economy means that fares have fallen in some cases by as much as 30%-40%. Reports indicate some difficult times ahead.

1. What is the economic outlook for the airline industry?
2. What needs to be done if an airline company wants to survive the cut-throat competition?