Loss forecasts for airline industry double
More bad news came from IATA yesterday, as the body revised its financial forecasts this year to predict that the aviation industry would lose a staggering US$9 billion this year, nearly double its prediction in March.
IATA believes that around $1.5 billion of this loss will stem from the Middle East, as despite its relatively strong traffic demand, the region is still susceptible to heavy recession in both Europe and Asia.
International air cargo demand is expected to fall by 17% this year, with airlines expected to carry only 33.3 million tonnes of freight in 2008. Yields are predicted to drop by around 11% for cargo.
“Our future depends on a drastic reshaping by partners, governments and industry. We cannot bear the cost of government micro-regulation, crazy taxation and partners abusing their monopoly power,” said Giovanni Bisignani, IATA’s director general and CEO in a speech at the agency’s AGM in Kuala Lumpur.
“We cannot manage in these unprecedented times with one hand tied behind our back. Airlines need the same commercial freedoms that every other industry takes for granted—access to global markets and capital,” Bisignani added.