Iata: worst revenue environment in 50 years

IATA has forecast in 2009, an industry loss of US$2,5bn. All regions, except the US, are expected to report larger losses in 2009 than in 2008. “The outlook is bleak. The chronic industry crisis will continue into 2009 with US$2,5bn in losses. We face the worst revenue environment in 50 years,” said Giovanni Bisignani, Iata’s director general and ceo. According to Bisignani, African airlines will continue to see losses of US$300m. Bisignani also said that the region’s carriers will face strong competition and that defending its market shares will be the main challenge. Iata also updated its forecast for 2008 to a loss of US$5bn. This is slightly improved from the US$5,2bn loss projected in the association’s September forecast primarily as a result of the rapid decline in fuel prices. Iata’s forecast highlights for 2009 are: • Industry revenues are expected to decline to US$501bn. This a fall of US35bn for the US$536bn in revenues forecasted for 2008. • Yields will decline by 3,0% (5,3% when adjusted for exchange rates and inflation). • Passenger traffic is expected to decline by 3% following growth of 2% in 2008. This is the first decline in passenger traffic since the 2,7 drop in 2001. • The 2009 oil price is expected to average US$60 per barrel for a total bill of US$142bn. This is US$32bn lower than in 2008 when oil averaged US$100 per barrel. Jeanette Phillips (jeanettep@nowmedia.co.za)