Financial Forecast-Aviation 2009

The International Air Transport Association (IATA) announced its forecast for 2009 showing an industry loss of US$2.5 billion. All regions, except the US, are expected to report larger losses in 2009 than in 2008.

Forecast highlights are:

Industry revenues are expected to decline to US$501 billion. This a fall of US$35 billion from the US$536 billion in revenues forecasted for 2008. This drop in revenues is the first since the two consecutive years of decline in 2001 and 2002.
Yields will decline by 3.0% (5.3% when adjusted for exchange rates and inflation).
Passenger traffic is expected to decline by 3% following growth of 2% in 2008. This is the first decline in passenger traffic since the 2.7% drop in 2001.
Cargo traffic is expected to decline by 5%, following a drop of 1.5% in 2008. Prior to 2008 the last time that cargo declined was in 2001 when a 6% drop was recorded.
The 2009 oil price is expected to average US$60 per barrel for a total bill of US$142billion. This is US$32 billion lower than in 2008 when oil averaged US$100 per barrel.

“The outlook is bleak. The chronic industry crisis will continue into 2009 with US$2.5 billion in losses. We face the worst revenue environment in 50 years,” said Giovanni Bisignani, IATA’s Director General and CEO.





Worst Year on Record.