Airlines will take a $4.1 billion hit in 2009, says IATA
18 Oct 2008
Geneva: A global economic slowdown is expected to see airlines around the world running up cumulative losses reaching $4.1 billion (3.05 billion euros) in 2009 according to industry association International Air Transport Association (IATA).
IATA had earlier forecast a cumulative loss of $5.2 billion for 2008 mainly on the back of higher oil prices and declining demand.
Though oil prices have tumbled to half the peak of $147 a barrel posted in July, IATA said it was sticking to its forecast for 2008 since revenues were under pressure as "economies have weakened sharply over the summer months."
The losses are set to extend into next year, it added.
"The industry is highly geared to the economic cycle and has always suffered substantial losses in previous economic downturns.
"As a result, and despite fuel costs now likely to be much lower than expected at the time of this forecast, our forecast for further losses amounting to $ 4.1 billion in 2009 still looks a plausible outcome," it said.
.jpg "RBI keeps repo rate unchanged as focus remains on inflation")
.jpg "Indian Oil, Panasonic team up for lithium-ion cell production in India")
