The world’s airlines look set to return total losses of almost four billion euros this year, according to the International Air Transport Association.
The industry group said losses next year are likely to be close to two billion euros.
It said the situation would be worse but for the recent rapid decline in fuel prices.
IATA is forecasting 6.5 percent less turnover next year, with passenger traffic dipping by three percent; that would be the first fall since 2001.
Air cargo, which makes up over a third of goods traded internationally and is a barometer of the global economy, is expected to be down five percent
Calling this the worst revenue environment in 50 year, IATA predicted that only North American carriers are expected to make any profit next year, but that will be around 230 million euros, less than one percent of revenue.
Losses by European airlines are likely to widen to around 770 million euros, with the Asia-Pacific region even higher.
IATA also believes that Airbus and Boeing are likely to see cancellations or deferrals on some plane orders.