Europe will see a 5-percent reduction in flights this year due to the economic recession, according to a Eurocontrol forecast.

The decline in air traffic will affect all sectors, including low-cost carriers, which saw 5 percent fewer flights in February compared to February 2008. The business aviation market was down by 21 percent in February.

The release of the Eurocontrol forecast March 24 coincided with the release of a revised financial forecast by the International Air Transport Association (IATA). The association predicts global air-transport industry losses of $4.7 billion this year; last December, it pegged 2009 losses at $2.5 billion.

“The state of the airline industry today is grim,” stated Giovanni Bisignani, IATA director general and CEO. “Demand has deteriorated much more rapidly with the economic slowdown than could have been anticipated even a few months ago.”

North American carriers are expected to deliver the best performance this year, with a combined profit of $100 million. A 7.5-percent reduction in demand is expected to be offset by an equal reduction in capacity. “Carriers are benefiting from careful capacity management and lower spot prices for fuel,” IATA said.