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Loss forecast to 7,4 billion Usd in 2005 for Iata carriers Steep oil price increases will push the world's airline industry deeper into the red in 2005 than previously forecast, IATA DG and CEO Giovanni Bisignani said yesterday in Washington.With the full-year price for Brent crude expected to come in at around $57 per barrel, losses will rise to $7.4 billion, up from a forecast of $6 billion made in May that was based on an estimated average annual price of $47 per barrel. Still, Bisignani observed that a $10 billion jump in annual fuel cost has resulted in "only" a $1.4 billion increase in the bottom-line loss owing to airline efficiency improvements and cost-cutting. IATA forecasts that industry revenues will rise 10.2% to $412 billion this year as operating expenses climb 10.8% to $411 million, resulting in a breakeven operating result. Using IATA figures as a basis, ATWOnline calculated that excluding fuel, operating expenses will rise only 2% this year, while if fuel had remained at last year's average price, the 2005 operating profit would have totaled $35 billion, representing an 8.5% operating margin. In addition to increased oil prices, refinery margins for jet fuel have soared from $6 per barrel in 2003 to $17, a development Bisignani charged "is difficult to see as anything other than a $14 billion cash grab by the oil industry." 13 Set 2005 |
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