Europe's airlines 'face record loss'

European airlines could post a record loss of $1.1bn (£711m) this year, nearly double the forecast three months ago, the aviation industry warned yesterday.

The International Air Transport Association's (Iata) forecast reflects dampened demand as recessions in the UK and Spain and turmoil in Greece and elsewhere in Europe have seen would-be travellers stay put.

The trade body, which represents 240 carriers, also called on European politicians to drop their "unilateral and extra-territorial" emissions trading scheme. The planned EU levy on airlines will be calculated on carbon emissions for entire flights, not just the part of the journey over Europe.

Regional airline Flybe blamed high oil prices and slow demand for its £6.2m pre-tax loss for the year to April.