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World's Airlines Expected to Lose Nearly $5 Billion

The world's major airlines are expected to lose nearly $5 billion this year, with analysts saying they could make their way back to profitability only if oil prices fall.

A report Tuesday from the International Air Transport Association says the industry has been hammered by terror attacks, the SARS crisis, war and an economic down-turn along with record-high fuel prices.

The association represents most airlines.

An IATA official says airlines have cut non-fuel costs significantly over the past couple of years and have carried a record 1.8 billion passengers this year.

Some information for this story provided by Reuters and AFP.