IATA: Lower fuel prices will not save flight companies

December 26, 2008

Tone kilometers in an air transport have not been rising since last summer. The biggest decrease of transported goods appeared in October with 8% fall regarding to the yearly average level.

Because of current situation, International association for air transport (IATA) announced even more discouraging business results. Considering IATA forecasts, cargo and passenger air transport may decrease for about 5% in the year 2009. In Northern America, air transport will decrease for about 5,5%, in Europe about 3,5% and in Asia about 2,5% decrease. On the other hand, air transport on Near East will even rise for 1%.

Lower prices of fuel will not help

IATA predicted that lower fuel prices will not cause major positive effects in an air transport business. Before economical crisis, most of flight companies had tried to assure better fuel prices with long-term contracts. This situation has shown as extremely disadvantageous in current situation, when fuel prices have fallen down in last two months. Instead of 60 milliard of USD that should be saved on lower fuel prices, air companies will save only about 36 milliard of USD.

Therefore, the volume of an air transport in  2009 might fall to the level from years 2005 and 2006, that will cause a 2,5 milliard USD deficit in the whole air-transport branch.