Global airlines to lose $5.6 bln in 2010, says IATA

GENEVA. December 16. KAZINFORM The world's airlines are expected to suffer a net loss of 5.6 billion U.S. dollars in 2010, larger than the previously forecast loss of 3.8 billion dollars, the International Air Transport Association (IATA) said on Tuesday; Kazinform refers to Xinhua.
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In its latest financial outlook, the industry group also maintained a forecast net loss of 11 billion dollars in 2009.

"Between 2000 and 2009, airlines lost 49.1 billion dollars, which is an average of 5 billion dollars per year," said Giovanni Bisignani, IATA's director general and CEO.

"The worst is likely behind us. For 2010, some key statistics are moving in the right direction. Demand will likely continue to improve and airlines are expected to drive down non-fuel unit costs by 1.3 percent," Bisignani said in a statement.

"But fuel costs are rising and yields are a continuing disaster. Airlines will remain firmly in the red in 2010 with 5.6 billion dollars in losses," he added.

According to the IATA outlook, following a decline of 4.1 percent in 2009, world passenger traffic is expected to grow by 4.5 percent in 2010 (stronger than the September forecast of 3.2 percent). A total of 2.28 billion people are expected to fly in 2010, bringing total passenger numbers back in line with the peak recorded in 2007.

Cargo demand is expected to grow by 7 percent to 37.7 million tonnes in 2010 (stronger than the previously forecast 5 percent), following a 13 percent decline in 2009; Kazinform cites Xinhua.

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