The International Air Transport Association (IATA) revised its airline financial forecast for 2009 to a global loss of USD nine billion. This is nearly double the Association’s March estimate of a USD 4.7 billion loss, reflects a rapidly deteriorating revenue environment. IATA also revised its loss estimate for 2008 to USD 10.4 billion from the previous estimate of USD 8.5 billion.
“There is no modern precedent for today’s economic meltdown. The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced. After September 11, revenues fell by seven per cent. It took three years to recover lost ground, even on the back of a strong economy. This time we face a 15 per cent drop—a loss of revenues of USD 80 billion—in the middle of a global recession. Our future depends on a drastic reshaping by partners, governments and industry. We cannot bear the cost of government micro-regulation, taxation and partners abusing their monopoly power,” said Giovanni Bisignani, Director General and CEO, IATA, |