IATA estimates losses

IATA estimates losses

The Icelandic volcano crisis has cost airlines more than 1.7 billion dollars in lost revenue in the six days after the initial eruption.According to estimates from the International Air Transport Association (IATA) this reached 400 million dollars a day for the three greatest days of disruptions.”At the worst, the crisis impacted 29% of global aviation and affected 1.2 million passengers a day. The scale of the crisis eclipsed 9/11 when US airspace was closed for three days.” said Giovanni Bisignani, IATA’s Director General and CEO.IATA found that there were some cost savings because of the flight groundings. For example, the fuel bill is 110 million dollars a day less compared to normal. But airlines faced added costs including from passenger care. “For an industry that lost 9.4 billion dollars last year and was forecast to lose a further 2.8 billion dollars in 2010, this crisis is devastating.” said Bisignani.To help ease the financial crisis, IATA has called for governments to relax airport slot rules, lift restrictions on night flights, and look at unfair passenger care regulations and how they compensate airlines for lost revenues.

Gary Marshall
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Gary Marshall
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