Airline woes
June 8, 2009
The International Air Transport Association (IATA) released the figures at its annual meeting in Kuala Lumpur. The forecast is almost double what had been estimated only three months ago, when the organization predicted a drop of only $4.7 billion.
"Today's situation is unprecedented, the most difficult ever," IATA Director-General Giovanni Bisignani said. "There is no modern precedent for today's economic meltdown. The ground has shifted. Our industry has been shaken."
Bisignani added that the revised figures signaled that a recovery in the sector was still a long way off.
Combined with an estimated loss of $10.4 billion in 2008, the industry now looks set to lose almost $20 billion in over just two years.
Estimates suggest that airlines will suffer an eight percent drop in passengers and a 17 percent decrease in cargo demand this year. These negative trends come despite a lowering of fuel charges.
"Optimists see growth by the end of the year, but pessimists view this as a mirage," Bisignani said. "I am a realist. I don't see facts to support optimism."
ai/dpa/AFP
Editor: Chuck Penfold