IATA revises forecast

IATA has revised its financial forecast for the air transport industry for 2009. In December 2008, it had predicted that the industry would see a loss of $2.5 billion for this year, it now forecasts that the year will see losses amounting to $4.7 billion. The association anticipates that revenues will fall by 12% to about $467 billion. Passenger traffic is expected to contract by 5.7% while cargo is likely to drop by 13%.
IATA’s Director General and CEO, Giovanni Bisignani said: “Fuel is the only good news. But the relief of lower fuel prices is overshadowed by falling demand and plummeting revenues. The industry is in intensive care. Airlines face two immediate fundamental challenges: conserving cash and carefully matching capacity to demand.”