An Industry on the Brink - Airlines Face Deeper Losses as Falling Yields, Rising Fuel Costs Bite

Washington, DC — September 15, 2009 — Airline losses this year are likely to total a worse-than-expected $11 billion as rising fuel prices and exceptionally weak yields hit carriers already reeling from the worst economy in 60 years, according to a revised global financial forecast from the International Air Transport Association (IATA).

The new estimate for losses this year is $2 billion worse than the previously projected $9 billion loss. Industry revenues for the year are expected to fall by $80 billion (15 percent) to $455 billion compared with 2008 levels, according to IATA, which represents some 230 airlines comprising 93 percent of scheduled international air traffic.