The International Air Transport Association recently announced a revised industry financial forecast for airline losses this year and 2009 and evaluated that the difficult business conditions will remain.
According to the new forecast, the association, which represents 230 airlines around the world, predicts the global airline industry will post losses of 5.2 billion dollars in 2008 based on an average crude oil price of 113 dollars per barrel (140 dollars for jet fuel).
As for 2009, the association claims that the difficult business environment is expected to continue. Most economies are expected to deliver even weaker economic growth next year, which will negatively impact air travel and freight. According to estimates, with an expected oil price of 110 dollars per barrel (136 dollars for jet fuel) and continued weak growth, industry losses are expected to continue at 4.1 billion dollars. The 2009 fuel bill is expected to rise to 223 billion dollars that comprises 40 percent of operating expenses.