IATA warns: Don’t bite the hand that feeds you
ISTANBUL – The bad news just keeps coming for the world’s airlines as the cost of fuel surges and the red ink starts to drip all over balance sheets.
IATA forecasts a loss of US$2.3 billion for 2008 based on an average oil price of US$106.5 per barrel, but things could get a lot worse.
Losses could reach US$6.1 billion with an oil price at US$135 per barrel for rest of the year, IATA warned.


Director general and CEO, Giovanni Bisignani, compared the airline industry to Sisyphus – a mythical character whose fate was to constantly carry heavy loads uphill.


Over the last 60 years the industry made US$11.5 trillion in revenues, but only US$32 billion in profits. Average margin for the entire industry has been just 0.3%. And the industry is US$190 billion in debt.
“Since 2001, airlines achieved massive change. Fuel efficiency improved 19% and non-fuel unit costs dropped 18%. The skyrocketing price of oil has eaten these gains and left the industry in the red again.
“Oil prices at US$130 a barrel are changing the game for everyone. The situation is grim,†said Bisignani.


Bisignani said governments must stop “crazy taxation, change the rules of the game and fix the infrastructureâ€.
“We are in this together. Don’t bite the hand that feeds you,” said Bisignani.
Ian Jarrett
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
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Strike action set to cause travel chaos at Brussels airports
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent