IATA CEO predicts $5.5 billion loss

THE HIGH price of fuel is robbing airline profitability and putting at risk the livelihood of 28 million people in aviation and aviation related activities, Giovanni Bisignani, director general and CEO of the International Air Transport Association said at a conference in New York recently. “The fuel bill rose from US$44 billion in 2003 to US$63 billion last year. If oil averages US$43 per barrel (Brent) for 2005, the bill will be US$76 billion. And that would leave us with an industry loss of US$5.5 billion for 2005 and over US$40 billion for the period 2001-2005,” said Bisignani.