Asia-Pacific airline losses may touch $1 billion

Geneva: Asia-Pacific air carriers are expected to suffer a heavy blow next year with losses mounting to over $1 billion in 2009.
Unlike other regions, Asia-Pacific carriers are going to experience heavy losses, according to the International Air Transport Association’s (IATA) forecast made public today. The total loss to these carriers is estimated at about $500 million this year.
While global airlines are likely to have a soft-landing with less dramatic losses next year than initially feared, mainly due to continued drop in fuel prices, Asia-Pacific carriers are witnessing a different trend, IATA’s chief Giovanni Bisignani told reporters. IATA said its forecasts for next year were based on an average oil price of $60 per barrel.
The total losses in airline industry which are estimated at US $ 5 billion this year are expected to shrink to $ 2.5 billion next year, the director general indicated.
In sharp contrast, Asia-Pacific carriers which currently account for 45% of the global cargo market are disproportionately hit largely due to a precipitous drop in trade, he suggested.
The airlines industry is in a “sick” state, he said, adding, “the outlook is bleak.” Further, “ the chronic industry crisis will continue into 2009,” he said. “We face the worst revenue environment in 50 years.”
10/12/08 D Ravi Kanth/Business Standard

To Read the News in full at Source, Click the Headline

Categories: Foreign Dec 2008, Indian Aviation- In General Dec 2008