IATA has predicted that 2009 will be a very difficult year for the airline industry.

The airline industry is facing its worst revenue environment in 50 years with revenues expected to decline by US$501 billion (around £339bn) in 2009, according to the International Air Transport Association (IATA).

The association, which represents more than 230 airlines around the world, predicted that the industry as a whole will experience a $2.5bn loss, and that both passenger traffic and yields are expected to decline by 3%. Fuel bills, however, are anticipated to decrease by $32bn, with barrels averaging a cost of $60 compared with $100 upwards in 2008.

All international regions will experience losses, apart from North America which could report a small profit of $300 million because of the decreasing fuel prices. Middle Eastern, Latin American and Asia-Pacific carriers will all see losses at least double in 2009, while European airline losses will increase ten-fold and African airlines will see their losses of £300m continue.

Giovanni Bisignani, Director General and CEO of IATA, commented: “The industry remains sick. And it will take changes beyond the control of airlines to navigate back into profitable territory…Governments must stop crazy taxation, fix the infrastructure, give airlines normal commercial freedoms and effectively regulate monopoly suppliers.”

Many airlines have reported losses during 2008, including Emirates Airlines whose profits dropped by 88%, British Airways which posted losses of 90% and Ryanair whose half-year profits were down 47%.