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IATA has estimated that the airlines industry will lose $5.2 billion this year. While some regions will show small profits, the negative impact, according to IATA, will be almost universal. Thus, it is estimated that in 2008, North American carriers will post losses to the tune of $5 billion; Asia-Pacific is expected to see profits shrink from $900 million in 2007 to $300 million this year and European carriers from $2.1 billion to $300 million. In the same period, Latin A merican and African carriers will suffer losses of $300 million and $700 million respectively, while the West Asian carries will experience a drop in profits by $100 million to $200 million. The estimate, however, is based on an average crude price of $113 per barrel, which comes to $140 per barrel for jet fuel. While there has been some relief in the oil price in recent months, the year-to-date average is $40 per barrel more than the average for 2007. In its outlook for 2009, IATA expects the difficult business environment to continue, with industry losses totalling about $4.1 billion and the fuel bill approximately $223 billion, accounting for an estimated 40 per cent of the operating costs.

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