IATA: World's Airlines Will Lose $6.1 Billion in 2008

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Airlines to lose US$6.1B in 2008: IATA

Oil prices "changing everything"

Andrea Rothman and Rishaad Salamat, Bloomberg Published: Monday, June 02, 2008

Airlines may report combined losses of US$6.1-billion this year, the worst since 2003, as spiraling fuel costs and slowing economies wipe out earnings.

The International Air Transport Association, whose members account for 93% of international traffic, cut its forecast for the fourth time in nine months at a meeting in Istanbul today after oil prices rose 42% in six months.

IATA, which forecast a US$4.5-billion profit as recently as April 1, said the surge in fuel expenses has combined with slowing demand after the tightening of global credit to create a "perfect storm." The airline industry had a profit of US$5.6-billion in 2007, the first since the 2001 terror attacks. [Full Article]

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