IATA pegs aviation industry loss in 2008 at $2.3 bn
The aviation industry appears to be headed for trouble with an airline body report forecasting an industry-wide loss of $2.3 billion in 2008.
By PTI |
MUMBAI: The aviation industry appears to be headed for trouble with an airline body report forecasting an industry-wide loss of $2.3 billion in 2008.
International Air Transport Association (IATA), the apex global body of the airlines operators, has revised its industry financial forecast for 2008 significantly downwards to a loss of $2.3 billion.
This is a swing of $6.8 billion from the previous forecast industry profit of $4.5 billion announced in March and based on an average oil price of $86 per barrel, an IATA press release said today.
The current forecast uses a consensus oil price of $106.5 per barrel crude (Brent).
"We also need to take a reality check. Despite the consensus of experts on the oil price, today's oil prices make the $2.3 billion loss look optimistic. For every dollar that the oil price increases, we add USD 1.6 billion to costs," IATA Director General and CEO Giovanni Bisignani said.
If we see the price at $135 for the rest of the year, losses could be $6.1 billion, he said.
International Air Transport Association (IATA), the apex global body of the airlines operators, has revised its industry financial forecast for 2008 significantly downwards to a loss of $2.3 billion.
This is a swing of $6.8 billion from the previous forecast industry profit of $4.5 billion announced in March and based on an average oil price of $86 per barrel, an IATA press release said today.
The current forecast uses a consensus oil price of $106.5 per barrel crude (Brent).
"We also need to take a reality check. Despite the consensus of experts on the oil price, today's oil prices make the $2.3 billion loss look optimistic. For every dollar that the oil price increases, we add USD 1.6 billion to costs," IATA Director General and CEO Giovanni Bisignani said.
If we see the price at $135 for the rest of the year, losses could be $6.1 billion, he said.
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