Airlines expect profit drop in 2009
Airlines expect profit drop in 2009 - Heathrow Airport News
Airport news for Heathrow on 29/01/2009.
The International Air Transport Association (IATA) publishes its Airline Confidence Index quarterly, with figures compiled during a survey of its 230 member airlines. In addition to the fall in profits, a majority of airlines are also predicting that passenger demand for flights will decline. Only one-fourth of the member carriers expect an increase in passenger demand during 2009.
A significant loss in optimism in the industry is suggested by the recent IATA report. In a survey that was conducted just three months ago, 75 per cent of the member airlines said they expected consumer demand to grow this year.
"Economic recession is quoted by many respondents as being a key driver of this change in the demand pattern,” an IATA spokesman said.
“Almost half the respondents now expect to see lower passenger volumes in the next 12 months with less than a quarter expecting an increase," the spokesman added.
Approximately 80 per cent of airlines responding to the survey said that their profits had dropped in the final quarter of 2008, and around 39 per cent also reported a drop off in revenue.
BA announced this week that it was anticipating a loss of £150 million for the current fiscal year.