ISTANBUL, Turkey — An announcement likely to send shudders through the American airline industry and American credit unions with airline-based fields-of-membership puts the loss to the industry due to surging fuel prices at $2.3 billion.

The International Air Transport Association, meeting here for its 64th Annual General Meeting and World Air Transport Summit revised its industry financial forecast for 2008 significantly downwards using a consensus oil price of $106.5 per barrel of crude . This is a swing of $6.8 billion from the previously forecasted industry profit of $4.5 billion that was announced in March and based on an average oil price of $86 per barrel.

“For every dollar that the price of fuel increases, our costs go up by $1.6 billion,” said Giovanni Bisignani, IATA Director General and CEO. “We also need to take a reality check. Despite the consensus of experts on the oil price, today's oil prices make the $2.3 billion loss look optimistic. For every dollar that the oil price increases, we add $1.6 billion to costs. If we see $135 oil for the rest of the year, losses could be $6.1 billion,” said Bisignani. “The situation has changed dramatically in recent weeks. Oil skyrocketing above $130 per barrel has brought us into uncharted territory. Add in the weakening global economy and this is yet another perfect storm.”