Airlines are set to lose $9 billion this year with demand for air travel falling away as a result of the global recession and swine flu. A statement released by the International Air Transport Association indicates things are unlikely to get better in the near future. According to IATA chief Giovanni Bisignani, there is no sign of improvement. "Optimists see growth by the end of the year but pessimists view this as a mirage and expect an L-shaped recovery,'' Bisignani says. "I am a realist. I don't see facts to support optimism. Our industry is in survival mode."

British Air's Chief Executive Officer Willie Walsh told Bloomberg there isn't much that can be done, saying there's "nothing we can do in the current environment to stimulate traffic, particularly in the premium market. It doesn't respond to pricing activity."

It's not just the airlines suffering. European aircraft manufacturer Airbus has told reporters it expects airlines will be shelving their orders for new planes. It will certainly be less than last year.

So what's ahead. You would have to expect more mergers, cheaper fare and there is the prospect of airlines shutting down.