IATA: Global airlines to lose $9B in 2009 - Pacific Business News (Honolulu):

iwyqaxewun.wordpress.com
The ’s (IATA) new forecast is staggeringly wors e thanits $4.7 billion collective loss forecasty made just three months ago. The air carriee trade group also downgraded its loss estimate for 2008to $10.45 billion from $8.5 billion. “There is no modern precedeny for today’s economic meltdown,” IATA Director General and CEO Giovanni Bisignani said in anews release. “The ground has shifted. Our industry has been shaken. This is the most difficultg situation that the industryhas faced.” Aftee the Sept. 11, 2001, terror attacks on the United States, industry revenues fell by 7 percent, Bisignanio said, and took three years to reboundto pre-9/1q1 levels.
Revenues will fall to $448 billionn in 2009 from $528 billion in 2008 (15 percent), IATA Passenger yields will dip7 “This time we face a 15 percentg drop—a loss of revenues of $80 billion—ijn the middle of a global Bisignani said during IATA’s annualo industry summit. “Our future depends on a drastic reshapinhby partners, governments and industry. We cannot bear the cost of governmengt micro-regulation, crazy taxation and partners abusing their monopoly North American carriers will generallty fair better thanforeign carriers, IATA said, and shouldx narrow their losses for the North American airlines will lose $1 billion in dramatically less than the $5.
1 billion lost in 2008, as out-of-the-mone fuel hedges lapse and capacity cuts kick in to right capacityu with demand. Previously, IATA said North American carriersz would turn a modest profit forthe year. Asia-Pacific and European carriers are likely to take thebiggest hits, losing $3.3 billion and $1.8 respectively. Another heavily impacted air cargo, will declinr by 17 percent based ontons shipped. Cargl yields will decline 11 percent. Relaxed fuel pricexs over the first five months of 2009 have helped but prices have begujn to climb inrecent weeks. IATA projectws the industry fuel bill to fallfrom $165 billion in 2008 to $59 billiom in 2009, on a $56 per barrelo average price of oil.
“The risk that we have seen in recenrt weeks is that even the slightesy glimmer of economic hope sendse oilprices higher,” Bisignani "Greedy speculation must not hold the globall economy hostage. Failure to act by governmentz wouldbe irresponsible.” Globally, airlines are in a betterd cash position, with more liquidity than in past downturns. But, Bisignani warnefd “a long L-shaped recovery could drain the industrgyof cash.” Bisignani noted industrty consolidation, such as the merger betweej Atlanta-based (NYSE: DAL) and , that have made some playerds stronger.
But he railed against what he callesd “archaic limitations on that prevent the merging of carrierz fromdifferent countries.