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Asia Pacific Airlines Expected To Lose Around US$4.8 Billion This Year - AAPA



SINGAPORE -(Dow Jones)- The Association of Asia Pacific Airlines said Thursday that Asian airlines are expected to lose about US$4.8 billion this year as a result of the global economic downturn.

"Asian airlines as a group are expected to record another year of heavy losses on top of the US$4.3 billion suffered in 2008," Andrew Herdman, AAPA's director general, said.

"We are looking at around US$4.8 billion loss this year," he told reporters.

AAPA said in a statement that Asian airlines remain uncertain whether "signs of a fragile recovery in passenger and cargo volumes will prove to be sustainable."

Herdman said that for the first 10 months of this year international passenger numbers were down 8.2% for AAPA members, while air cargo experienced a 16.5% decline on year.

AAPA said in a statement that preliminary passenger numbers reached 11.1 million in October, slightly higher than in September but still 3% below the levels a year earlier.

Air cargo traffic was 2.5% lower on year, which was the smallest shortfall so far this year.

"AAPA leaders have to steer a difficult course over the next year, both tightening management costs and closely monitoring what still appears to be a fragile economic recovery," Herdman said.

AAPA consists of 17 airlines including ANA, Cathay Pacific, China Airlines, Singapore Airlines, Qantas, Philippine Airlines, Japan Airlines and Garuda Indonesia.

-By Costas Paris, Dow Jones Newswires; 65 6415 4151; costas.paris@dowjones.com


  (END) Dow Jones Newswires
  11-19-090212ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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