IATA warns of tough year ahead

The International Air Transport Association (IATA) is warning that 2009 is set to be one of the most difficult years for the airline industry.

The association is forecasting a global fall in passenger traffic of 3% and a fall in air cargo of 5% for the year ahead.

In 2008, passenger traffic increased by just 1.6%, compared to a rise of 7.4% the previous year. Furthermore, cargo traffic for 2008 declined 4% compared with a rise of 4.3% the previous year, according to the IATA.

Chief executive of the IATA, Giovanni Bisignani, said the decline in cargo traffic was higher than that experienced in the aftermath of the 9/11 terrorist attacks in 2001.

Meanwhile, the IATA said business travel is suffering a heavy decline, with an 11.5% fall in the number of premium tickets issued worldwide in November.

The IATA said the economic downturn will slash $35 billion from air industry revenues this year.

The airline industry suffered in 2008 as a result of record oil prices, which saw over 30 airlines go bust including XL Airways, the UK’s third-largest tour operator, ATA Airlines, Aloha Airgroup, EOS, Maxjet, Oasis, Silverjet and Skybus Airlines.

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