IATA: Airlines Lost $8 Billion in 2008 as Downturn Worsened
MARCH 2, 2009, 7:18 A.M. ET

By STEVE MCGRATH

LONDON -- The world's major airlines had combined losses of as much as $8 billion in 2008, far more than the $5 billion previously predicted, as the industry downturn worsened significantly late in the year, the International Air Transport Association, or IATA, said Monday.

Airlines lost $4 billion in the fourth quarter of last year alone as the global economic downturn caused passenger and cargo volumes to tumble, and as airlines lost money on hedges set up when fuel prices were at record highs in the first half of last year, the trade body said in its Airlines Financial Health Monitor.

"Unlike earlier in the year, airlines are now losing money at the operating level," IATA said. Full Article