Airlines’ Losses ‘Will Top Worst Estimate’

The world’s airlines have lost at least $3.3 billion since the beginning of the year and they will show a worse than expected loss in 2009, the industry’s trade body has warned.

British Airways, Ireland’s Aer Lingus and Singapore Airlines are among the carriers to have reported a drop in financial performances so far this year, with 50 airlines reporting total first quarter net losses of $3.3 billion.

The International Air Transport Association (IATA) added its financial forecast for the industry was “significantly more pessimistic” than recent estimates of a $4.7 billion deficit in 2009.

Giovanni Bisignani, IATA chief executive, said he would predict wider losses when airline chiefs gather at the annual industry summit in Kuala Lumpur next week.

The gloomy outlook echoes recent comments by the British Airways chief executive, Willie Walsh, who said he saw ‘no green shoots’ af ter his airline reported a record loss of £401 million last year.

“Since our last forecast in March, when we anticipated a $4.7 billion loss in 2009, the industry situation has deteriorated,” said Bisignani.

The Iata chief said the decline in cargo traffic had remained around 20 per cent, indicating a deep economic downturn that would depress passenger numbers for months to come.

The heaviest first quarter losses were recorded by European carriers, with posttax losses of $1.9 billion.