But passenger volumes improving
Airline net losses continued to grow in Q2, according to the financial health monitor published today (September 1) by the International Air Transport Association (IATA).
The Association said that from a sample of more than 50 carriers, losses were running at above $6bn for the year.
IATA said that fuel prices were also rising with crude oil now more than $80 a barrel which was "intensifying airline cash burn."
But the monitor also revealed that stronger equity markets had enabled carriers to raise $15bn to cushion their falls in revenue.
IATA also said there was evidence that passenger volumes were starting to improve although this was partly because of reduced fares.
Passenger numbers rose 3% in July compared with June but IATA said the figures were still "well below" the level of July 2008.
IATA said: "Travel only began to stabilise at the end of the first quarter. There was a material improvement in July but the future path is likely to be volatile and weaker than normal recoveries."
The Association also noted that the scale of capacity cuts was "slowing and published schedule plans suggest future growth."
Passenger load factors were healthier too with IATA reporting that in July, for the first time in a year, they were higher than for the same month in 2008.
But IATA warned the 80.3% figure for July could mark the high point with passenger numbers likely to fall in winter and capacity due to expand.
Revenue per kilometre (RPK) in Europe and North America fell, respectively, by 3.1% and 3.2%, from July 2008 to July 2009, both higher than the industry average of 2.9%.
But both regions reported a higher than average load factor for the same period: 82.2% in Europe and 85.5% in North America against an industry average of 80.3%.
Asia Pacific continued to be the area worst hit by the recession with a 7.6% fall in RPK since July 2008 and a load factor of 76.3%.
The Middle East was the only region to report an increase of 13.2% in RFK.
www.iata.org