The world's airlines will collectively lose $9 billion this year _ nearly double the previous projections _ and face a slow recovery as the economic crisis saps air travel and cargo demand, an industry body warned Monday. The International Air Transport Association, which represents 230 airlines worldwide, increased its loss estimate from the $4.7 billion it forecast in March, reflecting a «rapidly deteriorating revenue environment.» Although there has been growing signs of a bottoming out of the recession, IATA said the industry was severely hit in the first quarter with 50 major airlines reporting losses of more than $3 billion. Weak consumer confident, high business inventories and rising oil prices pose headwinds for future recovery, the association said during a two-day global aviation conference in Kuala Lumpur. Revenues are expected to decline by $80 billion _ or an unprecedented 15 percent from a year ago _ to $448 billion this year, and the weakness will persist into 2010, it was quoted as saying by Associated Press. «There is no modern precedent for today's economic meltdown. The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced,» said IATA Chief Executive Giovanni Bisignani. The Geneva-based association also revised its estimated loss for last year to $10.4 billion from $8.5 billion previously. It said passenger traffic for 2009 is expected to contract by 8 percent from a year ago to 2.06 billion travelers. Cargo demand will decline by 17 percent.
