'09 Airline Losses Likely Worse Than Post-9/11

Companies to lose $4.7 billion in economic crisis
By Matt Cantor,  Newser User
Posted Mar 24, 2009 11:50 AM CDT
In this June 28, 2008, file photo, Airbus workers accompany the first Airbus A380 plane for the Emirates airline during the delivery ceremony at the Airbus plant in Hamburg, northern Germany.   (AP Photo/Fabian Bimmer, File)
camera-icon View 2 more images

(Newser) – World airlines will lose $4.7 billion this year, and revenues will plummet $62 billion—worse than after 9/11, a top industry association said. The grim estimate is almost twice what it was in December and reflects “the rapid deterioration of the global economic conditions,” said the International Air Transport Association. But things look better in North America, the AP reports.

North American carriers are expected to pull in a combined $100 million profit, with “a 7.5% fall in demand matched by a 7.5% cut in capacity,” the group said. Worldwide, “demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago,” the group noted. “Resizing the industry will be much tougher than the adjustments we saw after 9/11 or SARS.”