"We have lost several years of growth, and yields are under severe pressure. Airlines are in survival mode. Cutting costs and conserving cash are the priorities," says Giovanni Bisignani, LATA's director-general. Although dismal, these comments are the reality the airlines are facing in todays challenging economic environment. According to IATA, international passenger traffic is down almost 10% in May compared to last year. IATA also estimates that industry losses in 2009 will be $9 billion. One positive sign: air cargo, which is the leading indicator for world trade, dropped 17% in May versus prior year, which was an improvement from the 21% drop in April, and a signal that the negative trends have possibly hit bottom.
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