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Global airline business says worst over
The global airline industry is still clouded but a silver lining is that its collective losses is set halve in 2010 from this year’s levels, with talk that the worst is over. But profit prospects stay grim in the face of rising costs and lower yields per seat.
The global airline industry is still clouded but a silver lining is that its collective losses is set halve in 2010 from this year’s levels, with talk that the worst is over. But profit prospects stay grim in the face of rising costs and lower yields per seat.
As a result, the International Air Transport Association, (IATA) has revised the expected global industry losses in 2010 to $5.6 billion, larger than the previously forecast loss of $3.8 billion, but about half of the $11 billion loss in 2009.
Between 2000 and 2009, airlines lost $49.1 billion, Giovanni Bisignani, director-general, IATA, said.
“The worst is likely behind us,” he said. “Demand will likely to continue to improve.”
Passenger traffic is expected to grow by 4.5 per cent in 2010, but yields are biting the industry as corporate customers cut back on travel.
IATA does not disclose country-wise figures, but based on local estimates, Indian aviation companies are expected to lose an equivalent of $2 billion in the current year.
