The International Air Transport Association (IATA) predicts “the worst revenue environment in 50 years” in the airline business next year, according to a global market forecast the group released yesterday. In all, IATA sees a loss of $2.5 billion, led by a doubling in losses among Asia-Pacific carriers to $1.1 billion. Europe will rival Asia-Pacific’s bruising with a tenfold rise in losses, to $1 billion, according to the IATA report.
IATA’s bleak outlook for the Asia-Pacific market comes just as China’s Civil Aviation Administration released guidelines this week that advise its airlines to cancel or delay delivery of aircraft scheduled for delivery next year. Reacting to a sharp drop in airline traffic following the summer Olympics in Beijing, the CAA also urged its carriers to ground and sell airplanes, allow leases to expire and accelerate cargo conversions of older airplanes.
