World airlines seen losing $9 billion this year

AP via Yahoo!:



World airlines seen losing $9 billion this year
By EILEEN NG, Associated Press Writer


KUALA LUMPUR, Malaysia – The world's airlines will collectively lose $9 billion 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."

Although there has been growing signs of a bottoming out of the recession, IATA said the industry was severely hit in the first quarter with 50 major airlines reporting losses of more than $3 billion. Weak consumer confidence, high business inventories and rising oil prices pose headwinds for future recovery, the association said during a two-day global aviation conference in Kuala Lumpur.

Revenues are expected to decline by $80 billion — an unprecedented 15 percent from a year ago — to $448 billion this year, and the weakness will persist into 2010, it said. ........(more)

The complete piece is at: http://news.yahoo.com/s/ap/20090608/ap_on_bi_ge/as_airline_losses

to increase passenger capacity. It's already too tight to begin with.

Do they really think this is going to encourage people to fly? I fly less now than I have in decades, and it's because it's a phenomenal pain in the ass to go somewhere by plane.

Big corporations never seem to learn. (Or they just don't care.)

Both, at least in the forms we understand today, are going the way
of the buggy whip.

Broadcast television is being destroyed by the emergence of Internet-
based "narrowcasting" where you'll be ablevto see exactly what you
want exactly when you'll want to see it.

Air travel is being destroyed (at least for us, the great unwashed masses)
by the ever-rising costs of fuel, the increasing intrusiveness of "security
theater", and the just damned-fool stupidity of the executives who run
the airlines.

Tesha

I used to travel several times a year...this year I haven't even thought about getting on a plane...the thought of dealing with airlines and the repressive airport system keeps me very close to home. I'm sure those who regularly fly have a litany of horror stories and my list is long...from messed up ticketing to endless delays and obnoxious customer service and TSA people. Then there are all the extra charges for less and less...little competition has turned this industry into a basketcase.