Q2 losses for airlines cross $2 billion: IATA

Aviation industry trade group, the International Air Transport Association (IATA), has said that international airlines have lost a combined $2.02 billion for the second quarter of the year with 54 airlines reporting financial results. This, according to IATA, is a figure signifying a "further deterioration" in the aviation environment considering that carriers "usually make 50% of their profits in this seasonally strong quarter."

The reporting carriers lost $926 million in the year-ago period and approximately $4 billion in the 2009 first quarter, IATA said in an Airlines Financial Monitor released yesterday.

The industry's second-quarter operating loss of $468 million compared to a $2.3 billion profit in the 2008 second quarter.

On the plus side, IATA pointed out that airline share prices rose 3.6% in August and was up 7.4% from the start of the year, while "stronger" equity markets have allowed carriers to raise $3 billion in equity and $12 billion in debt this year.

Both passenger numbers and cargo tonnes rose more than 3% from June to July, and July marked the first month in more than a year in which average international passenger load factor (80.3%) was not down year-over-year.

The industry added 87 new aircraft in July, removed 12 from service and retired 18, contributing to a year-to-date addition of 487 planes.