Global Airline industry to lose $5.2b in '08: IATA
Global airline industry will post losses of $5.2 bn in 2008 based on an average crude oil price of $113 per barrel, according to the International Air Transport Association (IATA).
By ET Bureau |
Global airline industry will post losses of $5.2 bn in 2008 based on an average crude oil price of $113 per barrel ($140 for jet fuel), according to the International Air Transport Association (IATA).
Cargo demand in July contracted by 1.9% compared to 2007, said Montreal-based IATA. Asia Pacific carriers - the largest players in the cargo market - were hit hard with a 6.5% drop in demand. Asia Pacific is expected to see profits shrink from $900 million in 2007 to $300 million this year.
Most economies are expected to deliver weaker economic growth next year, which will negatively impact air travel and freight, the forecast said. With an expected oil price of $110 per barrel ($136 for jet fuel) and continued weak growth (2.9 per cent tkp), industry losses are expected to continue at $4.1 bn.
The 2009 fuel bill is expected to rise, as hedging offers less protection, to $223 bn comprising 40 per cent of operating expenses.
"While we expect the bottom line to improve by about $1 billion next year, the industry will be $4.1 bn in the red," said Mr Bisignani.
Cargo demand in July contracted by 1.9% compared to 2007, said Montreal-based IATA. Asia Pacific carriers - the largest players in the cargo market - were hit hard with a 6.5% drop in demand. Asia Pacific is expected to see profits shrink from $900 million in 2007 to $300 million this year.
Most economies are expected to deliver weaker economic growth next year, which will negatively impact air travel and freight, the forecast said. With an expected oil price of $110 per barrel ($136 for jet fuel) and continued weak growth (2.9 per cent tkp), industry losses are expected to continue at $4.1 bn.
The 2009 fuel bill is expected to rise, as hedging offers less protection, to $223 bn comprising 40 per cent of operating expenses.
"While we expect the bottom line to improve by about $1 billion next year, the industry will be $4.1 bn in the red," said Mr Bisignani.
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