Airline Expects $4.7 Billion Loss

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A new forecast said that airline industry from around the world will experience $4.7 billion loss this year in addition to the $8.5 billion profit decline in 2008. Meanwhile, experts said that airlines in South America, Europe, and Asia will be the most affected by the sharp profit decline.

The International Air Transport Association (IATA) on Tuesday said that airlines from around the world will face a combined profit loss that could reach $4.7 billion before the year ends in addition to the $8.5 billion profit decline in 2008.

The group said that airlines in South America, Asia, and Europe are the regions that will be the most affected by the sharp profit decline as more flight passengers are expected to postpone travels and vacation amid the financial crisis.

The association said that Asian and European carriers are expected to lose more than $1.7 billion and $1 billion, respectively. Meanwhile, airlines in North America will experience modest gains of nearly $100 million.

IATA chief executive Giovanni Bisignani said the situation of the airline industry grim as it continuously deteriorating due to economic slowdown, adding that things can get worse for the following months ahead.

IATA said that carriers combined profit will face 12 percent decline to $467 billion this year, the biggest slump since the September 11 terrorist attack.

According to experts, business travel which is the most money-generating aspect of airline industry, has dramatically declined as more companies are now postponing domestic and international travels of its executives in line with its cost-cutting measure.

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Airline Expects $4.7 Billion Loss

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