AviationRegister   E-Xpert Witness Journal

Global developments presenting risks and rewards for the aircraft trading and financing market

Comments are subject to the site's terms of use and do not necessarily reflect the opinion or approval of the publisher, editorial staff or employees. Users whose comments violate the terms of use may have their comments removed or all of their content blocked from viewing by other users without notification. The publisher does not guarantee information accuracy and disclaims all liability.

Headline News was last updated: January 8, 2010

Service

Guide.

M

From 2001 through 2008, passenger and cargo airlines worldwide reported a cumulative deficit of $55B; add IATA's 2009 projections and the loss reaches $66B. That loss will exceed $70B when IATA's 2010 $5.6B projected loss is taken into account.

IATA will have to change its projected 2009 $11B loss for the 230 airlines it represents in 120 countries that carry 93% of the world’s international scheduled traffic if the 2009 loss of $13.3B is confirmed for Japan Airlines.

Project forward to 2012, the accumulated losses will approach $100B.

It will take until 2020 for the global airline industry to recover these losses based on historical financial performance for the years in which the airline industry made profits.

January 2009

IATA will have to change its projected 2009 $11B loss for the 230 airlines it represents in 120 countries that carry 93% of the world’s international scheduled traffic if the 2009 loss of $13.1B is confirmed for Japan Airlines.

IATA is forecasting a net loss of $5.6B for the airline industry in 2010 vs. the $3.8B predicted earlier in 2009. The 2010 projection may have to be revised.

December 2009

Chinese carriers operated 1,399 aircraft as of November 2009.

China's airlines earned $1B in the first 11 months of 2009 vs. $400M in the year-ago period, according to CAAC.

China’s revenues: Total operating revenue was down 3% $29B & expenses fell 3.6% to $28B.

China’s payloads: Passengers carried grew 19.6% to 211.5M as domestic traffic grew 21.8% to 198.2M & international traffic fell 5.5% to 13.3M

CAAC predicted that domestic passenger traffic in China would also grow by double digits in 2010.

Cargo volume in China rose 5.7% to 4M tonnes through November 2009. Domestic cargo grew 8% and international cargo grew 0.2% to 1.1M tones.

CAAC says that steady domestic economic growth & global economic recovery are the basis for the turnaround.

IATA is forecasting a net loss of $5.6B for the airline industry in 2010 vs. the $3.8B previously predicted.

Profits: IATA says 75 major airlines reported Q3 profits of $718M million vs. a $3.4B loss in the year-ago quarter. www.aviationregister.biz

IATA (A trade association) represents 230 passenger and cargo airlines in 120 countries and carries 93% of the world’s international scheduled traffic. www.aviationregister.biz

Profits: Airlines returned to profit in Q3 as the industry prepares for a full year loss of $11B says IATA. (www.aviationregister.biz

September 2009

Losses: The global airline industry will lose $11B in 2009, IATA says.

Losses: European carriers are expected to post $3.8B, the largest losses, followed by Asia-Pacific airlines with $3.6B & North American carriers with $2.6B.

Revenues: IATA says airline revenues will fall by 15%, from $535B in 2008 to $455B in 2009.

Cash consequences: Airlines have to conserve cash, which means they are delaying spending on more fuel-efficient aircraft.

Recovery: IATA sees no recovery until 2012 at the earliest noting that it took more than three years to recover after the Sept. 11 attacks, and the recession has been worse.

Traffic: Passenger traffic is expected to decline by 4% and cargo by 14% in 2009.

Structural change: IATA is saying this recession may result in a long-lasting structural change for the airline industry.

Fuel prices: IATA notes that though the price of fuel fell in 2009 from its record 2008 highs costs are increasing again, dampening the industry’s recovery.