Oil Price Rise Adds to Airlines' Woes
global airline industry is forecast to have made net losses of $4.8bn this year, as the rise in the oil price has overwhelmed efforts by carriers to cut costs.
The International Air Transport Association (Iata) said on Tuesday that the aviation industry had suffered net losses of more than $35bn in the last four years from 2001 to 2004.
Several airlines around the world have collapsed during the prolonged financial crisis and leading US carriers United Airlines and US Airways as well as ATA are still struggling to emerge from Chapter 11 protection from their creditors.
Brian Pearce, Iata chief economist, forecast a small net profit for the industry in 2005 of $1.2bn based on an average Brent crude oil price of $34 a barrel.
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