IATA warns airlines could lose $9bn

The International Air Transport Association (IATA) has warned the world's airlines could lose over $9 billion this year, as the global economic slowdown continues.

This is nearly double the association’s March estimate of a $4.7 billion loss, reflecting a rapidly deteriorating revenue environment, says the IATA.

In addition the IATA revised its loss estimate for 2008 to $10.4 billion from the previous estimate of US$8.5 billion.

"There is no modern precedent for today’s economic meltdown," explained IATA’s director general Giovanni Bisignani.

Speaking at the State of the Industry in Kuala Lumpur, he added: "The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced.

Mr Bisignani noted that after September 11th revenues in the airline industry fell by seven per cent. It took three years to recover the lost ground, even on the back of a strong economy.

This time the sector is faced with a 15 per cent drop — a loss of revenues of $80 billion— in the middle of a global recession.

North American carriers are expected to show a loss of $1 billion. However, this is significantly better than the $5.1 billion loss in 2008.

All other major regions are also expected to show losses for 2009.

travelbite.co.uk staff