The Director General of the European Regional Airline Association says airline bankruptcies around the world are set to double over the winter, with at least 70 for the year.
Mike Ambrose said that the current climate for airlines was far more significant than the period after the attacks on New York in 2001, describing the current year as a 'year of hell'.
'The 9/11 terrorist attack created a loss of confidence in safety but this is far more pernicious, it is a loss of confidence in investment,' he said.
Airlines have struggled throughout 2008 amid a cocktail of soaring fuel prices, slowing consumer demand and the impact of the credit crisis on bank liquidity.
More than 30 airlines have collapsed around the world this year, including business class-only airline Silverjet and travel giant XL in the UK.
Mr Ambrose called for a lower regulatory burden for airlines, estimating that a European scheme to make airlines pay more for carbon emissions could add €6m a year to the cost of a typical regional airline.
The legislation for a European trading scheme to reduce carbon emissions has already been passed in Brussels, but the details are still being examined by European lawmakers.
ERA said in a statement its member airlines had reported combined passenger growth of 3.7% in the months January to June, the lowest increase since 2001.
