MALAYSIA: IATA revises airline losses upwards to US$9 billion

The International Air Transport Association (IATA) has predicted that the world’s scheduled airlines could lose as much as US$9 billion in 2009 – nearly twice the level of losses it forecast just three months ago – and has revised its 2008 loss estimate upwards to $10.4 billion from the previous estimate of $8.5 billion. In […]


65th IATA AGM Giovanni Bisignani IATA State of the Industry World Air Transport Summit


The International Air Transport Association (IATA) has predicted that the world’s scheduled airlines could lose as much as US$9 billion in 2009 – nearly twice the level of losses it forecast just three months ago – and has revised its 2008 loss estimate upwards to $10.4 billion from the previous estimate of $8.5 billion.

In his ‘State of the Industry’ address to 500 of the industry’s top leaders gathered in Kuala Lumpur for the 65th IATA AGM and World Air Transport Summit, IATA director general Giovanni Bisignani told members that the “economic meltdown” was taking a heavy toll on the industry.

“There is no modern precedent for today’s economic meltdown. The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced.

“After September 11, revenues fell by seven per cent. It took three years to recover lost ground, even on the back of a strong economy. This time we face a 15 per cent drop – a loss of revenues of $80 billion – in the middle of a global recession. Our future depends on a drastic reshaping by partners, governments and industry. We cannot bear the cost of government micro-regulation, crazy taxation and partners abusing their monopoly power,” said Bisignani.