The world's airlines are being squeezed even as the global economy recovers, with higher oil and jet fuel prices causing added pain, an industry group said this afternoon.
Net losses continued to expand in the second quarter of 2009, reaching at least $6 billion for the first half of the year, the International Air Transport Association (IATA) said.
In its latest financial monitor, it said the second quarter of 2009 involved "further deterioration" for airlines' bottom lines. Big carriers normally take in half their annual profits in the season that includes the northern hemisphere summer.
"This year second quarter losses of $2 billion follow first quarter losses of $4 billion," IATA said in a statement. "Total industry losses in the first half of 2009 are likely to have been in excess of the reported $6 billion.
IATA has previously estimated airlines will lose $9 billion in 2009 after an $8.5 billion loss in 2008, when high oil prices hit profits and then the global credit and financial crisis slashed demand for business and leisure air travel.
The Geneva-based group, whose 230 member airlines fly some 93 percent of international air traffic, also said that signs of economic rebound had pushed up energy prices in August, with jet fuel prices above $80 a barrel.
While air cargo volumes and passenger numbers rose in July, improving from their credit crunch and recession lows, IATA said "both remain well below levels seen at the same time last year."
"There was a material improvement in July but the future path is likely to be volatile and weaker than normal recoveries," it said.
IATA, whose members including British Airways, Cathay Pacific, Emirates and United Airlines, said last week that declines in cargo and passenger traffic in July were less than in the previous month.
The industry's recovery was under way but will be "volatile and weak", it said.
Reuters