Airline bankruptcies “to double”

Airline bankruptcies “to double”

The number of airline bankruptcies around the world this year is set to double over the winter to at least 70, a leading industry body has warned.

Mike Ambrose, director general of the European Regional Airlines industry body, said: “We are now up to around 35 (bankruptcies) this year. I see at least that number over the winter.”

He said that the current climate for airlines was “far more significant, far more far-reaching” than the period after September 11, describing 2008 as a “year from hell”.

He called for a lower regulatory burden for airlines, estimating that a European scheme to make airlines pay for carbon emissions could add six million euros a year to a typical regional airline.

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.