IATA: Airlines will lose $5 billion in 2004
International airlines are expected to lose about $5 billion in 2004, but could finally move into the black in 2005 after years of losses, according to the International Air Transport Association’s latest estimates of results for the worldwide airline industry.
“The bottom line numbers are terrible,” Giovanni Bisignani, director general of IATA, told a news briefing Tuesday. “Between 2001 and 2004 we lost $35 billion.”
IATA estimates the fuel bill for airlines in 2004 was $62 billion, $15 billion more than in 2003.
The global airline body expects airlines to earn a profit of $1 billion to $2 billion in 2005. “With revenues exceeding $350 billion, that is a long way from making us a good investment,” Bisignani added.
According to IATA, the cost of extra security measures to the worldwide airline industry is about $5 billion. IATA has called on governments to take on a greater share of the security costs.