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The global airline industry is set to suffer a pounds 2.27 billion loss this
year despite an expected five-six per cent increase in passenger and freight
traffic, according to the International Air Transport Association.
Industry losses reached pounds 3.4 billion in 2005, compared with pounds 2.4
billion in 2004 and pounds 4.3 billion the year before.
"The industry will not see black ink until at least 2007," IATA director
general Giovanni Bisignani warned.
A return to profitability in the airline industry has been hampered by a
surge in jet fuel prices to record high levels until they eased slightly in
the final months of 2 005.
European and Asian carriers made total profits of $1.3 billion and $1.5
billion respectively in 2005, but those results were offset by troubled US
carriers, which lost $10 billion, IATA said.
Air passenger traffic grew by 7.6 per cent last year, driven largely by the
Middle East and in Latin America.
"The industry is returning to a more normal growth pattern after the shocks
that began in 2001," said Mr Bisignani. "Passenger traffic is lower than the
15.3 per cent increase recorded in 2004, but above the historical growth of
six per cent."
But air freight grew by just 3.2 per cent last year, "disappointingly low",
he added.
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