Global airline industry forecasts rising losses this year

Washington - The International Air Transport Association (IATA) on Wednesday announced a revised global financial forecast predicting airline losses totalling US$11 billion in 2009, in a development that would impact on travel into and from Colombo.

This is US$2 billion worse than the previously projected US$9 billion loss due to rising fuel prices and exceptionally weak yields. Industry revenues for the year are expected to fall by US$80 billion (15%) to US$455 billion compared with 2008 levels, IATA said. IATA also revised its loss estimates for 2008 from a loss of US$10.4 billion to a loss of US$16.8 billion.

This revision reflects restatements and clarification of the accounting treatment of very large revaluations to goodwill and fuel hedges.