Non-Subscriber Extract
IATA forecasts deeper losses
By Jim Smith
18 September 2009
The International Air Transport Association (IATA) announced on 15 September a revised global financial forecast, predicting airline losses totalling USD11 billion in 2009.
This is USD2 billion worse than the previously projected USD9 billion loss, due to rising fuel prices and exceptionally weak yields.
Industry revenues for the year are expected to fall by USD80 billion to USD455 billion – a 15 per cent drop from 2008 levels.
IATA also revised its loss estimates for 2008 from a loss of USD10.4 billion to a loss of USD16.8 billion. This revision reflects restatements and clarification of the accounting treatment of very large revaluations to goodwill and fuel hedges. IATA industry profit figures strip out such extraordinary items that are not realised in cash terms.
"The bottom line of this crisis – with combined 2008-09 losses at USD27.8 billion – is larger than the impact of 9/11," said Giovanni Bisignani, IATA's director general and chief executive officer. Industry losses for 2001-02 were USD24.3 billion.