IATA: 20 airlines face bankruptcy

IATA: 20 airlines face bankruptcy

The International Air Transport Association (IATA) has warned that at least 20 international carriers are at risk of bankruptcy amid the worst crisis the industry has ever faced.

The International Air Transport Association (IATA) said passenger demand growth in August slowed to 1.3 per cent, following disappointing growth of 1.9 per cent in July.

Passenger load factors fell to 79.2 per cent – a sharp drop-off from the 81 per cent recorded during the same period last year as capacity growth outpaced demand.

Giovanni Bisignani, IATA’s director general and chief executive officer, said: “The global industry is in a perfect storm of high fuel costs and falling demand.

“The financial turmoil in the US is also affecting the airline industry and at least 20 airlines are at risk. The industry crisis is deepening and no region is immune.”

IATA forecasts the industry will make a loss of $5.2 billion this year and $4.1 billion in 2009.