IATA is the body of Airlines Company in the world. International Air transport association just stated earlier today is that the industry will suffer nearly $5.6 billion of lost in 2009. This is a huge amount of money and it is perhaps a bad news for the whole industry. However, you can look the matter from two different angles. First of all, in 2009, because of economic recession, the airlines industry in the whole world is suffering around $11 billion. So, in the next year, the loss will decrease by 50%. On the other hand, many airlines are under a lot of pressure this year and their survival will may become at stake if this kind of loss continues.
The main culprit is the rising cost of fuel. In 2009, because of economic recession, we noticed a downward trend in the price of crud oil. On the other hand, the global economy is gradually is coming out of economic recession and that is why in 2010, it is expected that the price of crude oil will increase significantly. IATA authorities are predicting the $5.6 billion loss by assuming that price of oil will be around $75 in 2010. However, if the global economy improves then this price can go even farther and the loss suffered by the airlines industry can even become more.
