Fuel costs ‘will push airlines to financial disaster’

Soaring oil prices will leave the world’s airlines nursing a loss of $5.5bn (£2.9bn) this year according to the industry body Iata, which admitted yesterday that aviation is “a financial disaster” in many countries.

Iata said airlines were likely to spend $76bn on jet fuel this year, compared with $63bn in 2004 and $44bn in 2003.