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KUALA LUMPUR, Malaysia (AP) -- The world's airlines will collectively lose $9 billion this year - nearly double the previous projections - and face a slow recovery as the economic crisis saps air travel and cargo demand, an industry body warned Monday.
The International Air Transport Association, which represents 230 airlines worldwide, increased its loss estimate from the $4.7 billion it forecast in March, reflecting a "rapidly deteriorating revenue environment."
"There is no modern precedent for today's economic meltdown. The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced," said IATA Chief Executive Giovanni Bisignani. The Geneva-based association also revised its estimated loss for last year to $10.4 billion from $8.5 billion previously.
The association expects the industry fuel bill to shrink by $59 billion, or 36 percent, to $106 billion this year, accounting for 23 percent of operating costs with an average oil price of $56 a barrel. But crude oil prices have rallied in recent weeks, breaching the $70 a barrel level on Friday on hopes of economic recovery.
The world's airlines will collectively lose $9 billion this year
The association expects the industry fuel bill to shrink by $59 billion, or 36 percent, to $106 billion this year...
Originally posted by LeaderOfProgress
So for a simple bit of math one can figure that the price of crude oil should be dropping. Consider this 85% of the US fuel consumption is done by the airlines. if their consumption is down 36% that would make the US fuel consumption down 30.6%.
Passenger airlines account for approximately 85% of gallons consumed by U.S. airlines, which account for an estimated 35% of global airline fuel consumption.