Bottom line worsens despite sustained increases
ALAN PEAT
ALTHOUGH AIR traffic sustained increases across all regions for the first nine months of this year, the bottom line for the airline industry worsened, according to the latest data from the International Air Transport Association (IATA).
International scheduled passenger traffic grew 17.7%, while cargo posted gains of 14.1%. Single month comparisons for this September against last show 10.9% growth for passenger and 13.6% for cargo traffic.
Airline efforts to meet demand and reduce costs are paying off, according to IATA director general and CEO, Giovanni Bisignani.
The sad story, however, is that despite these improvements the bottom line is worsening with the extraordinary price of fuel.
“If current fuel price levels persist,” Bisignani added, “losses may well exceed the US$3-4-billion previously forecast for 2004.”
