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Airlines to suffer 4.1 billion dollar losses in 2009: IATA

GENEVA - Airlines worldwide are expected to run up combined losses reaching 4.1 billion dollars (3.05 billion euros) in 2009 as the global economy slows, industry association IATA said Friday.

IATA had earlier forecast a loss of 5.2 billion dollars for 2008 on sharply higher oil prices and declining demand.

Although fuel prices are now at half the peak of 147 dollars a barrel posted in July, IATA said it was sticking to its forecast for this year since revenues are under pressure as "economies have weakened sharply over the summer months."

The losses are set to extend into next year, it added.

"The industry is highly geared to the economic cycle and has always suffered substantial losses in previous economic downturns.

"As a result, and despite fuel costs now likely to be much lower than expected at the time of this forecast, our forecast for further losses amounting to 4.1 billion dollars in 2009 still looks a plausible outcome," it said.