Airlines' outlook mixed for 2009 - Print Version - International Herald Tribune

Airlines' outlook mixed for 2009 - Print Version - International Herald Tribune: "International Herald Tribune
Airlines' outlook mixed for 2009
By Caroline Brothers
Tuesday, December 9, 2008

PARIS: Airlines in North America are expected to shift from huge losses to a modest profit next year, the industry's leading organization predicted Tuesday, but carriers in Europe and Asia will be moving in the other direction as losses deepen in the global economic downturn.

According to a report from the organization, the International Airline Transport Association, collective losses in the aviation industry will total $2.5 billion in 2009.

That is half the that loss that the association expects for 2008, thanks in part to operations in North America, where a sharp fall in fuel prices has brought immediate relief to airlines that did not hedge against such costs.

Unlike airlines elsewhere, several U.S. carriers were only just emerging from bankruptcy protection as oil prices were rising last year, leaving them unable to protect themselves against the surge in fuel costs. What was a problem then is now an advantage because as many non-U.S. airlines are being hit by not only a recession but also the costs of financing hedging programs they no longer need.

'The chronic industry crisis will continue into 2009 with $2.5 billion in losses,' said Giovanni Bisignani, chief executive"