Casualties are mounting among airlines as they face fuel bills US$70 billion ($89 billion) bigger than last year.

The pace of merger talks is also quickening and profit warnings are getting louder by the day.

In the United States and Europe, the downturn is likely to be far more painful than any that have been experienced over the last 25 years.

Airlines operating in New Zealand are better positioned than many, but still face cost cuts and further airfare increases, analysts say.

London aviation analyst Chris Tarry says airlines may lose as much as US$40 billion this year, more than three times the deficit recorded in 2001 after the September 11 terrorist attacks. ... Read full article