IATA: Global airlines to lose $9B in 2009 - Minneapolis / St. Paul Business Journal:

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The ’s (IATA) new forecas is staggeringly worse thanits $4.7 billion collective loss forecasy made just three months ago. The air carrierd trade group also downgraded its loss estimate for 2008to $10.3 billion from $8.5 billion. “There is no moderh precedent for today’s economic meltdown,” IATA Director General and CEO Giovanni Bisignanji said in anews release. “The ground has Our industry hasbeen shaken. This is the most difficul t situation that the industry has Afterthe Sept. 11, 2001, terro r attacks on the Unitedx States, industry revenues fell by 7 Bisignani said, and took thre years to reboundto pre-9/11 levels.
Revenues will fall to $448 billionn in 2009 from $528 billion in 2008 (15 IATA said. Passenger yields will dip 7 “This time we face a 15 percenft drop—a loss of revenues of $80 billion—in the middle of a globa l recession,” Bisignani said during IATA’s annual industrhy summit. “Our future depends on a drastic reshaping by governmentsand industry. We cannot bear the cost of governmentg micro-regulation, crazy taxation and partners abusing theirrmonopoly power.” North American carriers will generallhy fair better than foreign IATA said, and should narrow their losses for the year.
Northj American airlines will lose $1 billion in 2009, dramaticallgy less than the $5.1 billion lost in 2008, as out-of-the-monehy fuel hedges lapse and capacity cuts kick in to rightf capacitywith demand. Previously, IATA said North Americanm carriers would turn a modest profigt forthe year. Asia-Pacific and European carriere are likely to take thebiggesg hits, losing $3.3 billioh and $1.8 billion, Another heavily impacted air cargo, will decline by 17 percent based on tons Cargo yields will decline 11 Relaxed fuel prices over the first five months of 2009 have helpeed carriers, but prices have begun to climb in recent IATA projects the industry fuel bill to fall from $165 billionb in 2008 to $59 billion in on a $56 per barrel average price of oil.
“Ther risk that we have seen in recent weeks is that even the slightesf glimmer of economic hope sends oilpricex higher,” Bisignani said. "Greedy speculation must not hold the globalpeconomy hostage. Failure to act by governmente wouldbe irresponsible.” Globally, airlines are in a better cash position, with more liquidity than in past But, Bisignani warned “a long L-shaped recoveru could drain the industry of cash.” Bisignani noteds industry consolidation, such as the mergee between Atlanta-based (NYSE: DAL) and , that have made some playera stronger.
But he railed against what he calles “archaic limitations on ownership” that prevent the merging of carriers fromdifferent countries.