IATA: global airlines to lose $5.2 billion in 2008

The global airline industry is expected to pose losses of 5.2 billion U.S. dollars in 2008 due to high oil prices and falling demand, the International Air Transport Association (IATA) said on Wednesday.

“The situation remains bleak. The toxic combination of high oil prices and falling demand continues to poison the industry’s profitability,” IATA Director-General and CEO Giovanni Bisignani said in a statement.
The forecast is based on an average crude oil price of 113 U.S. dollars per barrel (140 U.S. dollars for jet fuel).

“While there has been some relief in the oil price in recent months, the year-to-date average is 113 U.S. dollars per barrel. That’s 40 U.S. dollars per barrel more than the 73 U.S. dollars per barrel average for 2007,” said Bisignani.

Xinhua