IATA financial forecast

Airline industry financial performance began to show signs of improvement during the third quarter, following deterioration during the first half of the year. A move out of recession and to stronger economic growth, particularly in emerging markets, boosted first air freight and then air travel. However, yields have been slow to rise from the sharp falls of the first half of the year and fuel prices continue their upward trend. Load factors are back to pre-recession levels but, due to fleet expansion, aircraft utilization is down sharply. As a result we still expect net losses of US$11 billion in 2009, and we have become less positive about prospects for 2010; our forecast for net losses has been raised from US$3.8 billion to US$5.6 billion.