GENEVA, Switzerland, April 4 (UPI) -- The global airline industry will lose about $5.5 billion this year due to higher energy costs, the International Air Transport Association warned Monday.
IATA Director-General Giovanni Bisignani said should oil prices average $43 per barrel in 2005, total fuel costs would be about $76 billion.
"And that would leave us with an industry loss of $5.5 billion for 2005 and over $40 billion for the period 2001 to 2005," Bisignani said. But the losses would be even greater should petroleum prices continue to rise.
In order to offset higher energy costs,Bisignani said governments need to do more to regulate the monopoly of industry suppliers that account for 10 percent of operating costs, as well as reducing taxes that are imposed on carriers.
"Deregulation was meant to foster competition and lower the cost of air travel. But governments continue to milk the industry for taxes and charges that are at the levels of alcohol and tobacco," he argued.
The Geneva-based IATA represents some of the world's biggest air carriers.
