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Airlines
lost up to 8 billion dollars in 2008: IATA
GENEVA, (AFP) - Airline companies lost up to 8.0 billion
dollars (6.32 billion euros) last year, with half of
the losses incurred in the fourth quarter, industry
association IATA said.
The International Air Transport Association hiked its
2008 loss estimate from a December forecast of five
billion dollars to 8.0 billion dollars amid “large
losses now being reported by Asian and European airlines.”
Airlines’ losses in the fourth quarter of 2008
“at 4.0 billion dollars were larger than expected,
because of recession and fuel hedging losses, pointing
to industry net losses of up to 8.0 billion dollars
for 2008,” said IATA in its latest Airlines Financial
Health Monitor report.
The report said airlines have been cutting capacity
to match shrinking demand, but the slowdown had outstripped
airlines’ reductions.
In January, capacity was down two percent compared to
the same month a year ago but passenger travel slumped
5.6 percent on the same 12-month comparison.
IATA in late February maintained a forecast of a 2.5-billion-dollar
loss for the industry in 2009.
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