Upward fuel cost trend worrying airlines: IATA

Fuel prices may have retreated somewhat over the past two months, after closing in on USD80 per barrel in Jun-2009, but IATA reports that the generally upwards price trend this year is now of "great concern" to airlines. With yields still dropping (second quarter premium revenues fell by 41%, worse than the 33% decline in 1Q2009), the higher cost of fuel is now "increasingly squeezing airline cash flows", according to the international airline trade body.