ID :
34687
Tue, 12/09/2008 - 18:00
Auther :
Shortlink :
https://oananews.org//node/34687
The shortlink copeid
IATA FORECASTS AVIATION INDUSTRY'S LOSSES AT US$2.5 BIL
From Umi Hani Sharani
GENEVA, Dec 9 (Bernama) -- The International Air Transport Association (IATA) has forecast the aviation industry's losses at US$2.5 billion for 2009, lower than the US$5 billion losses predicted for this year.
The Geneva-based organisation said all regions, except the United States,
are expected to report bigger losses in 2009 than in 2008.
IATA director-general and chief executive officer Giovanni Bisignani
said
the outlook for the industry was bleak.
"We face the worst revenue environment in 50 years," he said at the IATA
Global Media Day 2008 here Tuesday.
IATA also updated its 2008 loss forecast to US$5 billion.
This is a slight improvement from the US$5.2 billion loss projected in the
September forecast primarily caused by the rapid decline in fuel prices.
IATA said the slide in industry losses from 2008 to 2009 was
due to the shift in the results of North American carriers.
"Lack of hedging has allowed the region's carriers to post a small profit
of
US$300 million in 2009," said Bisignani.
He noted that although North America would be the only region in the black,
its expected small profit was less than one percent of their revenue.
"2009 will be another tough year for everyone," he said.
As for the Asia-Pacific carriers, Bisignani said they would suffer losses
more than double from the US$500 million in 2008 to US$1.1 billion in 2009.
He said with 45 percent of the global cargo market, the region's carriers
would be disproportionately impacted by the expected five percent drop in global
cargo markets next year.
"The region's largest market - Japan - is already in recession. And its two
main growth markets - China and India- are expected to deliver a major shift in
performance," he said.
Chinese growth is expected to slow as a result of the drop-off in exports.
India's carriers, already struggling with high taxes and insufficient
infrastructure, could expect a drop in demand following on from the tragic
terror incidents in November.
Bisignani also made a special note on the continuing contraction air cargo
traffic that started in June 2008.
"Air cargo comprises 35 percent of value goods traded internationally. The
7.9 percent decline in October is a clear indication that the worst is yet to
come for airlines and the slowing global economy," he added.
GENEVA, Dec 9 (Bernama) -- The International Air Transport Association (IATA) has forecast the aviation industry's losses at US$2.5 billion for 2009, lower than the US$5 billion losses predicted for this year.
The Geneva-based organisation said all regions, except the United States,
are expected to report bigger losses in 2009 than in 2008.
IATA director-general and chief executive officer Giovanni Bisignani
said
the outlook for the industry was bleak.
"We face the worst revenue environment in 50 years," he said at the IATA
Global Media Day 2008 here Tuesday.
IATA also updated its 2008 loss forecast to US$5 billion.
This is a slight improvement from the US$5.2 billion loss projected in the
September forecast primarily caused by the rapid decline in fuel prices.
IATA said the slide in industry losses from 2008 to 2009 was
due to the shift in the results of North American carriers.
"Lack of hedging has allowed the region's carriers to post a small profit
of
US$300 million in 2009," said Bisignani.
He noted that although North America would be the only region in the black,
its expected small profit was less than one percent of their revenue.
"2009 will be another tough year for everyone," he said.
As for the Asia-Pacific carriers, Bisignani said they would suffer losses
more than double from the US$500 million in 2008 to US$1.1 billion in 2009.
He said with 45 percent of the global cargo market, the region's carriers
would be disproportionately impacted by the expected five percent drop in global
cargo markets next year.
"The region's largest market - Japan - is already in recession. And its two
main growth markets - China and India- are expected to deliver a major shift in
performance," he said.
Chinese growth is expected to slow as a result of the drop-off in exports.
India's carriers, already struggling with high taxes and insufficient
infrastructure, could expect a drop in demand following on from the tragic
terror incidents in November.
Bisignani also made a special note on the continuing contraction air cargo
traffic that started in June 2008.
"Air cargo comprises 35 percent of value goods traded internationally. The
7.9 percent decline in October is a clear indication that the worst is yet to
come for airlines and the slowing global economy," he added.
