Aviation Industry May Lose $5.5 Billion in 2005

The airline industry will lose an estimated $5.5 billion in 2005, the International Air Transport Association chief executive said at a conference on Monday.

Attributing a bulk of the loss to high fuel costs, IATA CEO Giovanni Bisignani said at an air finance conference in New York that fuel hedging levels will fall to 20 percent in 2005 from 40 percent in 2004.

He also estimated fuel will make up 20 percent of airlines´ operating costs in 2005.