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IATA: Second-quarter Airlines losses plunge past $2 billion

Discussion in 'Biashara, Uchumi na Ujasiriamali' started by ByaseL, Sep 2, 2009.

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    ByaseL JF-Expert Member

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    Sep 2, 2009
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    Wednesday September 2, 2009

    IATA said 54 airlines that have reported second-quarter financial results have lost a combined $2.02 billion, a figure signifying a "further deterioration" the organization said is troubling considering that carriers "usually make 50% of their profits in this seasonally strong quarter."

    The reporting carriers lost $926 million in the year-ago period and approximately $4 billion in the 2009 first quarter, IATA said in an Airlines Financial Monitor released yesterday. The industry's second-quarter operating loss of $468 million compared to a $2.3 billion profit in the 2008 second quarter.

    Twenty North American airlines lost a combed $134 million last quarter, narrowed 68% from $419 million in the year-ago period. Twelve European carriers suffered a $1.1 billion loss, reversed from a $439 million profit, while 16 Asia/Pacific airlines lost $1.29 billion, widened 34.7% year-over-year.

    On the plus side, airline share prices rose 3.6% in August and are up 7.4% from the start of the year, while "stronger" equity markets have allowed carriers to raise $3 billion in equity and $12 billion in debt this year.

    Both passenger numbers and cargo tonnes rose more than 3% from June to July, and July marked the first month in more than a year in which average international passenger load factor (80.3%) was not down year-over-year. Traffic measured in RPKs fell 2.9% while ASKs dropped 2.8%. The industry added 87 new aircraft in July, removed 12 from service and retired 18, contributing to a year-to-date addition of 487 planes.

    By Brian Straus
     
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