Airlines Raise Cash But IATA Keeps Loss Outlook
The world's leading airlines were able to raise USD$8 billion in new cash from capital markets in the past two months, but their full-year outlook remains worrisome, IATA said on Tuesday.
In its latest industry snapshot, the International Air Transport Association said it still expected airlines to lose USD$11 billion on a net basis in 2009 and warned that with jet fuel prices on the rise, cash flows would be under pressure.
Air fares have been nudging up along with improved economic and consumer sentiment worldwide, IATA said, while stressing that prices remain much lower than they were before the financial crisis hit.
"The revenue environment remains extremely challenging," said the group, which represents 230 airlines.
It has previously said the airline sector would lose USD$4 billion in 2010 as a result of continued economic improvement.