Friday, July 31, 2009

Airline sector to lose US$9 billion this year - Wharton

BOOT read of the week is a June article from Knowledge @ Wharton called "The Airline Industry's Rising Crisis". The article quotes IATA's Giovanni Bisignani as increasing his estimates on 2008 losses for the air industry from US$8.5 billion to US$10.4 billion. Passenger traffic is not the only area of pain - cargo is likely to drop by 17%.

The article tries to point to some good news such as fuel back below $100 a barrel, increasing consolidation and teaming up by airlines and new technologies helping to reduce costs.

The final part of the article gives some specific and detailed analysis of the LATAM aviation market.

June 2009 stats from IATA (care of e-tid registration required for link) are tracking June revenue on international markets down a horrifying 25-30% with load factors of 75.3%, down from 77.6% in June 2008.

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