IATA forecast for 09 showing an industry loss of US$ 2.5bn

The International Air Transport Association (IATA) announced its forecast for 2009 showing an industry loss of US$2.5 billion. All regions, except the US, are expected to report larger losses in 2009 than in 2008.
Forecast highlights are:
* Industry revenues are expected to decline to US$501 billion. This is a fall of US$35 billion from the US$536 billion in revenues forecasted for 2008. This drop in revenues is the first since the two consecutive years of decline in 2001 and 2002.
* Yields will decline by 3.0% (5.3% when adjusted for exchange rates and inflation).
* Passenger traffic is expected to decline by 3% following growth of 2% in 2008. This is the first decline in passenger traffic since the 2.7% drop in 2001.
* Cargo traffic is expected to decline by 5%, following a drop of 1.5% in 2008. Prior to 2008 the last time that cargo declined was in 2001 when a 6% drop was recorded.
* The 2009 oil price is expected to average US$60 per barrel (Brent) for a total bill of US$142 billion. This is US$32 billion lower than in 2008 when oil averaged US$100 per barrel (Brent).
“The outlook is bleak. The chronic industry crisis will continue into 2009 with US$2.5 billion in losses. We face the worst revenue environment in 50 years,” said Giovanni Bisignani, IATA’s Director General and CEO.
IATA also updated its forecast for 2008 to a loss of US$5.0 billion. This is slightly improved from the US$5.2 billion loss projected in the Association’s September forecast primarily as a result of the rapid decline in fuel prices.
20/12/08 Moneycontrol.com

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