IATA sees serious turbulence ahead

Wednesday, 21 Oct, 2008 0

MONTREAL – The airlines continue to feel the heat from the global economic downturn.

The credit crunch is the worst crisis to hit the international aviation industry since the outbreak of SARS, latest IATA research shows. 



IATA said a decline in the number of economy and premium passengers in August, was the first decline since 2003, when an outbreak of SARS slashed airline business. 



“Prospects for premium travel, business travel in particular, look very depressed,” the association says. 



“The financial sector crisis will surely see a very large shrinkage in business travel from this sector. 



“Moreover, the increased likelihood of recession in major economies next year will further weaken both business and leisure travel.”


IATA has meanwhile retained its forecast for a US$4.1 billion combined industry loss next year, stating that although fuel prices are now at half the recent peak, economies have “weakened sharply over the summer months”.

IATA added, “The industry is highly geared to the economic cycle and has always suffered substantial losses in previous economic downturns.”



 

profileimage

Ian Jarrett



Most Read

Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know

Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham

Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago

Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research

Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact

Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference

Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role

Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal

Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination

Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness

Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future

Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
TRAINING & COMPETITION
Skip to toolbar
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...