The world's airlines will lose over £5bn in 2009, double the level forecast as recently as March, according to the International Air Transport Association (Iata).

Iata, which represents 230 airlines worldwide, said that global airlines were suffering due to the rising cost of fuel and the economic downturn meaning that less customers are using their services.

"There is no modern precedent for today's economic meltdown. The ground has shifted. Our industry has been shaken. This is the most difficult situation that the industry has faced," said Iata's director general, Giovanni Bisignani.