ERA: More bankruptcies on the cards for travel industry
24 September 2009 16:37
There are going to be more bankruptcies in the travel industry before the end of 2009, it has been claimed.
According to the European Regions Airline Association (ERA), while the passenger demand was not as much in decline as it has been in the past, airlines may still find it difficult to keep their heads above water.
Manager of corporate communications at ERA Lesley Shepherd said: "While the airlines have managed to sustain their passenger numbers this year, if it continues much longer then some airlines are going to find it difficult because they are going to run out of cash flow."
Due to the impact of the economic downturn on the travel sector, Brits planning a holiday may find it wise to check that their travel insurance policy covers them should the airline who they booked their flights with go under.
Figures from the International Air Transport Association showed that in July this year, passenger demand dropped by 2.9 per cent when compared with the same month in 2008.
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