1Q09 score -$3bn

Global airlines lost more than $3bn in 1Q09 IATA said today, maintaining its estimate for full-year losses of $9bn. In its latest industry snapshot IATA says weak travel demand and lower freight volumes in the global recession bled revenues for major carriers, in "a significant deterioration from last year."

"This deterioration was before the recent rise in fuel prices," IATA said, warning the 30% increase in jet fuel prices since early May is squeezing airline cash flows further. Both oil and jet fuel prices have risen almost $20/barrel in the past two months, and are already 75% higher than the low point at the end of 2008, the IATA Financial Monitor reports. But it said it was not changing its previous 2009 loss forecast of $9bn, which follows revised 2008 losses of $10.4bn. Take a listen to Perry Flint's podcast this month on the fundamental change in air travel demand to get a better idea of how serious this is.

Leading airlines are seeking mergers and acquisitions to build scale and shield themselves against continued market weakness until the global economy recovers. Its not like this solution is a guarantee of success either.

In other news --

• OnAir demo's powerful stuff
• Travel with Nepal
• EU to accept Garuda?
• Another crash

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