KUALA LUMPUR - AIRLINE executives on Tuesday expressed hope of a turnaround next year after fresh estimates showed they may lose close to US$20 billion (S$29 billion) from 2008 to 2009 due to the global economic slowdown.

'In our view, we see recovery towards end of 2010. We think recovery will start there,' said Mr Alan Joyce, chief executive of Australia's Qantas Airways Ltd.

'Our regional operations are holding well. Our long-haul is losing money,' he told fellow members of Iata, which represents 230 airlines accounting for 93 percent of scheduled international air traffic. 'The Japanese market is particularly weak. Swine flu is having an impact,' said Mr Joyce.

Iata chief economist Brian Pearce told AFP that the Asia-Pacific region, forecast to lose US$3.3 billion or over a third of 2009 industry losses, may see a recovery in 2010 with Europe lagging other regions.

He said government spending to stimulate consumption would help airlines. 'The US and North American markets will come out earlier than Europe,' he said.

Mr Pearce said that during this stormy period, 'airlines would love to merge but restraints on ownership will prevent it.' 'You will see alliances and coordinations by airlines to cut costs.'

Mr Tony Tyler, chief executive of Cathay Pacific Airways Ltd, said 'let's not forget when we recover we are recovering from a very bad base, and it will be some time before we are back to where we were.' 'I'm afraid we are in for a long haul. We are not going to see instant recovery,' he told a news conference.

Thai Airways International PCL is considering a combination of issuing debt and shares to boost its capital by 60 billion baht (S$2.56 billion) in the next 12 to 18 months, executive board chairman Wallop Bhukkanasut said.

'Issuing bonds is one of the options, but we are also considering a share offering,' he said on the sidelines of the conference. -- AFP, DOW JONES