Higher fuel prices and slipping demand for air travel have prompted a change. The International Air Transport Association revised its forecast of global airline losses for the year from $9 billion to $11 billion. Revenues for the air travel industry are expected to fall 15% to $455 billion worldwide. Passenger traffic is anticipated to fall by 4%, with cargo dropping 14% for the year.
Financially, IATA CEO Giovanni Bisignani says the impact of the financial crisis has been more severe than the terror attacks of eight years ago.
"The bottom line of this crisis-with combined 2008-2009 losses at $27.8 billion-is larger than the impact of 9/11," Bisignani explained in a prepared statement, continuing, "the global economic storm may be abating, but airlines have not yet found safe harbor."
The largest losses are most likely to come from Europe, according to IATA, reaching about $3.8 billion. In North America, air carrier losses are forecast to be $2.6 billion for 2009 – more than twice the previous prediction of $1 billion. Latin American carriers are expected to break even, with those in the Middle East expected to sustain losses of $500 million. Asia-Pacific carriers will fare nearly as badly as those in Europe, with losses likely to reach $3.6 billion.
Next year may not be good, but it shouldn't be as bad as 2009. In 2010, IATA expects the global air travel industry to post an aggregate loss of $3.8 billion.
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