World airlines are likely to post a worse -than-expected loss of US$11 billion this year, as the global economic downturn takes a heavier toll than the 9/11attacks, an industry association said Tuesday.

The International Air Transport Association (IATA) also revised its loss estimates for 2008 from US$10.4 billion to US$16.8 billion. The losses in 2008 and 2009 combined totaled US$27.8 billion, giving the industry its worst two-year performance in history.

"The bottom line of this crisis ... is larger than the impact of 9/11," said Giovanni Bisignani, IATA's director general and CEO. Industry losses for 2001-2002 were US$24.3 billion.

IATA attributed the worse ever loss to declining demand, rising fuel prices and exceptionally weak yields. Passenger traffic is expected to decline by 4 percent and cargo by 14 percent for 2009.Yields are expected to fall 12 percent for passenger and 15 percent for cargo.

Though "the global economic storm may be debating," Bisignani warned that airlines "have not found safe harbor" and that "the crisis continues."

IATA predicted that the industry would post a loss of US$3.8 billion in 2010. Industry revenues in 2009 are expected tobe 80 billion dollars less than 2008.

Bisignani predicted that "revenues are not likely to return to 2008 levels until 2012 at the earliest."

North American carriers are expected to post a 2009 loss of US$2.6 billion, more than double the initial forecast of one billion, said IATA.

European carriers are to be worst hit this year, with a loss of US$3.8 billion, also twice as much as the US$1.8 billion previously predicted.

Asia-Pacific carriers will likely post a loss of US$3.6 billion, roughly in line with the previous forecast of US$3.3 billion.

(Xinhua News Agency September 16, 2009)