Airline losses 'hit $1bn a month'

Airlines are likely to have lost more than $6bn (£3.7bn) in the first half of 2009, according to the International Air Transport Association (Iata). This figure - an average of $1bn a month - is double the amount Iata said in December that airlines would lose during the whole of 2009. Airlines made losses between April and June, when they would usually make 50% of their annual profits, Iata said.

Meanwhile, budget airline SkyEurope has filed for bankruptcy. The loss-making Slovakian airline, which was set up in 2001, has suspended all flights with immediate effect. And American Airlines has said it is cutting 921 flight attendant jobs as it deals with a downturn in passengers, and lower revenue.
Source: www.bbc.co.uk

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Downturn in US economy 'ending'

US Federal Reserve policymakers are increasingly confident the downturn in the US economy is ending, minutes from their latest meeting show. The assessment by recently re-appointed Fed Chairman Ben Bernanke and his colleagues struck a more upbeat tone than the last assessment in late June. But there was uncertainty about how quickly the economy would grow in 2010.

Unemployment, which is set to move above 10% this year, may impact on consumer behaviour, they warned. However the Fed said that consumer spending appeared to be levelling out and that the housing market was becoming more solid, while manufacturing was stabilising. The prospects for US exporters will also brighten, as the economies of other countries improved, the policymakers added.
Source: www.bbc.co.uk

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