IATA confirms airline losses, traffic rebound in 2004
The International Air Transport Association provided further evidence today that 2004 has seen both a continuation of losses for airlines and a rebound in international cargo and passenger traffic.
IATA estimates the worldwide airline industry ended 2004 with a loss of $4.8 billion, but forecasts an industry profit of $1.2 billion for 2005, assuming a price of $34 for Brent crude oil. “The price of fuel remains a critical factor for airline profitability,” the airline association said.
Worldwide cargo traffic increased 13.4 percent in 2004 over 2003, according to IATA, which also reported a 15.3 percent jump in worldwide passenger traffic for last year.
Freight saw double digit growth in all regions, with the Middle East carriers reporting the highest growth at 26.8 percent.
“The challenge for 2005 is to turn traffic growth into profitability with improved cost efficiency across the industry’s value chain,” said Giovanni Bisignani, director general of IATA.