Industry forecasts state that this year will see a continued decline in air passenger numbers leading to enormous losses for airlines in Europe.
A recent report published by the International Air Transport Association (IATA), has predicted that the total value of European airline losses would probably reach about $1 billion in 2009.
According to the prediction published by the industry group, it appears falling passenger demand combined with a weakening euro might result in losses that would be ten times the amount witnessed in 2008.
The losses anticipated have been predicted despite the fall in the price of oil which touched a bottom low of about $40 per barrel during last week after touching a sky high of $147 in July. The situation indicates that the carriers across Europe are undergoing a particularly difficult year.
Lorne Riley, a spokesman for the IATA said, "Airlines are under pressure due to falling revenue and decreasing passenger and cargo traffic. The global recession is having an impact on the way we travel, and despite the welcome fall in oil prices, airlines will suffer.â
Figures published by the IATA during last week revealed that that air passenger traffic across the globe had declined by 4.6 per cent in November, when compared with the same month a year earlier. Also, international cargo witnessed a sharper fall by up to 13.5 per cent. The IATA has added that the declines might be expected to stretch further into 2009 making it the first instance of a full year decline since 2001.
