The global airline industry is expected to almost halve its losses in 2006 thanks to buoyant economic growth and deep cost cuts, the world's top airline association said today.
The industry is now expected to lose $1.7 billion in 2006, much less than the $3 billion previously feared and well below the $3.2 billion worth of red ink seen in 2005, the International Air Transport Association said.
'With an average price of oil at $68 a barrel for the year we expect the total fuel bill to be $115 billion but losses will be cut to $1.7 billion,' IATA director general Giovanni Bisignani said today.
He attributed the improvement to 'efficiency, hard work and a strong revenue environment'. 'Overall, the industry has never been so lean, mean and well poised to return to profitability,' he added.
