IATA increases loss forecast for 2009 to $9 billion.(Upfront)

IATA, the international body representing the airline industry, has revised its forecast for 2009 from $4.7 billion (reported in March) to $9 billion, reflecting the sharp decline in market conditions for airlines. This new figure represents a 15 per cent drop in revenues from last year, a dip that could seriously jeopardise the future of some carriers.

Passenger demand is expected to contract by 8 per cent to 2.06 billion travelers compared with 2.24 billion in 2008. The combination of this projection and the yield data suggests that the premium cabins will witness the greatest dip in demand.

Ever frank on the issue, Giovanni Bisignani, IATA's Director General and …