The International Air Transport Association revised their global financial forecast downwards, but said the region’s carriers would lose $500 million, compared to the previous estimate of $1.5 billion. Although the crisis for aviation sector globally is increasing the outlook for Middle Eastern airlines is improving. IATA said “Airlines continue to gain long-haul market share with expanded capacity and hub connectivity. The weakness of economic recovery, however, could mean continued excess capacity and further losses.”
IATA revised projected loss figure for the global aviation industry is $11 billion, $2 billion higher than previously projected, because of higher fuel prices and weak yields. Industry revenue this year are expected to drop 15 per cent or $80 billion, to $455 billion compared to 2008. IATA director general and CEO, Giovani Bisignani, said the combined losses during 2008-09 are greater than the losses resulting from 9/11.
