World Airlines Losing $9 Billion US: Report - Next In Line for Handouts?

World Airlines Losing $9 Billion US: Report

www.cbc.ca

The world's airlines will collectively lose $9 billion US this year — nearly double the previous projections — and face a slow recovery as the economic crisis saps air travel and cargo demand, an industry body warned Monday.

The International Air Transport Association, which represents 230 airlines worldwide, increased its loss estimate from the $4.7 billion it forecast in March, reflecting a "rapidly deteriorating revenue environment."

...
It said passenger traffic for 2009 is expected to contract by eight per cent from a year ago to 2.06 billion travellers. Cargo demand will decline by 17 per cent.

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[edit on 9 Jun 09 by Gools]

That's a doubling of the expected loss forecast in just three months with further contracting demand for their services.

Note that these numbers are based on an average price of crude at $56 per barrel. The price of crude is currently nearer to $70.

I expect to see more and more stories about the troubled airlines as the price of crude keeps rising. I also expect my tax money to be on the hook for the bailout of yet another industry in the very near future.

Hold on to your wallets folks, the airlines are next in line.
.

www.cbc.ca
(visit the link for the full news article)