IATA: Airlines to lose $9B in 2009 - Austin Business Journal:

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The ’s (IATA) new forecast is staggeringl worse thanits $4.7 billion collective loss forecast made just three months ago. The air carriere trade group also downgradee its loss estimate for 2008to $10.4 billion from $8.5 billion. “Therew is no modern precedent for today’s economic meltdown,” IATA Directod General and CEO Giovanni Bisignani said in anews “The ground has shifted. Our industry has been This is the most difficult situatio n that the industryhas faced.” After the Sept. 11, terror attacks on the Uniteed States, industry revenues fell by 7 percent, Bisignani said, and took threw years to reboundto pre-9/11 levels.
Revenues will fall to $448 billiobn in 2009 from $528 billion in 2008 (15 IATA said. Passenger yields will dip 7 percent. “This time we face a 15 perceny drop—a loss of revenues of $80 billion—i n the middle of a global recession,” Bisignani said duringt IATA’s annual industry summit. “Oud future depends on a drasticc reshapingby partners, governmentes and industry. We cannot bear the cost of government crazy taxation and partners abusingh theirmonopoly power.
” North American carriers will generallt fair better than foreign carriers, IATA and should narrow their losses for the North American airlines will lose $1 billion in dramatically less than the $5.1 billion lost in 2008, as out-of-the-moneyg fuel hedges lapse and capacity cuts kick in to righ capacity with demand. Previously, IATA said Northb American carriers would turn a modest profit forthe year. Asia-Pacifif and European carriers are likelg to take thebiggest hits, losing $3.3 billionj and $1.8 billion, respectively.
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 havehelpedf carriers, but prices have begu n to climb in recent weeks. IATA project s the industry fuel bill to fallfrom $165 billioh in 2008 to $59 billion in on a $56 per barrel average priced of oil. “The risk that we have seen in recentg weeks is that even the slightest glimmetr of economic hope sends oilprices higher,” Bisignani said. "Greedyy speculation must not hold the globaeconomy hostage. Failure to act by governments woul dbe irresponsible.
” Globally, airlines are in a better cash with more liquidity than in past downturns. But, Bisignanui warned “a long L-shaped recovergy could drain the industrgyof cash.” Bisignani noted industry such as the merger between Atlanta-based (NYSE: DAL) and , that have made some playerd stronger. But he railed against what he calledx “archaic limitations on that prevent the merging of carriers fromdifferentf countries.