Monday, August 31, 2009
A new report from late last week reveals that Europe's carriers are struggling right alongside their transatlantic brethren. See Steve McGrath, European Airlines Rack Up Huge Losses, Dow Jones Newswire, Aug. 28, 2009 (available here). From the report:
The global airline industry is suffering one of its worst ever downturns as the credit crunch and economic downturn have caused steep falls in passenger numbers and cargo volumes. The International Air Transport Association, or IATA, last month said it expected the industry to record accumulated losses of $9 billion in 2009, almost double its previous forecast, reflecting a rapidly deteriorating revenue environment.
European scheduled carriers have racked up huge losses in the first half of the year as a result of the downturn, and have responded by grounding planes and cutting costs and jobs. Low-cost carriers have fared slightly better, but still have seen profits fall sharply.