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The International Air Transport Association (IATA) is warning that 2009 could be a tough trading year for all airlines, and is predicting that airlines worldwide will lose $5.2 billion in 2008, due to the high price of oil and slowing demand. This could spell the end for cheap flights and affordable global travel.

Aviation fuel is expected to rise to 36% of operating costs by the end of 2008 – compare that to 2002 when it was only 13%.

Traffic data for July ’08 showed a continuing decline in demand, and year on year from July ’07 to ’08 passenger growth slowed to 1.9% - the lowest in 5 years.

The current global economic crisis appears to be shaping the airline industry much more than the SARS epidemic, or indeed September 11th, 2001 and more airlines have gone bust in 2008 than during the aftermath of September 11th.

If you are travelling in India and are planning to take internal flights within the country, chances are you may take a flight with Kingfisher Airlines.

Founded in 2005 this young airline is already the largest, privately owned airline in India and now operates over 500 domestic flights each day. Branching out into international markets, the airline has recently completed its first flight into London Heathrow from Bangalore and is targeting further global expansion.

Kingfisher Airlines current strategy is moving them away from the “low cost cheap flight” sector and into the premium service market. This is, in the main, due to crippling fuel costs and high airport taxes within India and it is proving to be incredibly popular with Business travellers.

Launching international flights is not usually permitted under Indian law until an airline has operated domestically for five years. However, Kingfisher’s recent acquisition of its older rival Air Decaan has allowed it to accelerate its growth. Kingfisher Airlines are now planning to offer flights to Singapore, Kuala Lumpur, Hong Kong, Bangkok, the Maldives, Pakistan, Qatar, Sri Lanka, Kuwait and the UAE during 2009.