Bangkok--Sep 30--eTurbo news
SCARBOROUGH (Reuters) -- The global airline industry will lose about $5bn this year and more bankruptcies of carriers are likely, due in part to rising fuel costs, an International Air Transport Association official said on Monday.
"We expected to have a profit this year, but we will have a loss, worldwide speaking . . . we will have around $5 billion losses this year instead of a $3 billion profit," Patricio Sepulveda, IATA vice-president for Latin America and the Caribbean, said.
"The picture is not good. Many airlines are facing technical bankruptcy, but they are still flying," he said at the opening of the 13th regional conference of the Airports Council International of Latin America and the Caribbean.
The global industry group had recently predicted losses of $3-4 billion, warning that rising fuel prices could push losses higher.
The forecast comes despite rising global passenger traffic, which was up 17.7 percent through the first nine months of '04. Mr. Sepulveda said fuel accounts for 18% of the operating costs of airlines compared to 16 percent in '02.
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