Airline industry to lose $4.7 billion in 2009: IATA

[rsmith6621]

This is what happens to airlines who think charging less than the product is worth is smart business....I hope this doesnt find me out on the streets.

http://news.yahoo.com/s/nm/20090324/bs_nm/us_financial_airlines

GENEVA (Reuters) – World airlines are set to lose $4.7 billion this year as a result of the global recession that has shrunk passenger and cargo demand, industry body IATA said.

The International Air Transport Association had estimated in December the industry would lose $2.5 billion in 2009.

"The state of the airline industry today is grim. Demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago," Director-General Giovanni Bisignani said on Tuesday.

"The relief of lower fuel prices is overshadowed by falling demand and plummeting revenues. The industry is in intensive care."

IATA, which represents 230 airlines including British Airways (BAY.L), Cathay Pacific (0293.HK), United Airlines (UAUA.O), and Emirates (EMIRA.UL), also raised its estimate of international airline losses in 2008 to $8.5 billion, from its previous $8 billion estimate.

[ThomWV]

1. Take this for what its worth, but about the profitability of the Airline business

Some years ago (10?) I recall reading that if you added up the yearly net profit/loss of every air transport company (moving people or freight) that ever did business from the day the Wright brothers first flew until today the result would be a negative number.

Might be true or might not, but I've never seen anything to make me think otherwise.

[elleng]

3. Airlines have NEVER figured out how to make a go of it;

don't know about before 'deregulation'('70s), but since then U.S. carriers have regularly cried 'WOLF.' Transportation for the public is expensive.

[Phoebe Loosinhouse]

2. When every passenger is treated with disdain and crammed into teensy

uncomfortable, cramped seats, not to mention the whole pre-boarding process, and then your luggage is lost, and a huge percentage of flights are delayed - it just adds up to an experience that no one is crazy to experience more than they absolutely have to. Air travel is akin to flying buses for the most part, only not as nice.

If anyone is masochistic, they should try to find the show "Airline" on cable. OMG! The passengers are deranged or inebriated and the airline employees are often horrible little dictators drunk with their own power to ruin the passengers day/week/life depending on how benevolent they are feeling. I can't understand why any passenger would sign a release for the show and why the airline (Southwest) thinks this is a good idea.