The outgoing British Airways chief executive has warned that high oil prices could cost the aviation industry as much as £4 billion this year.
The rising fuel bills faced by airlines meant that industry losses would be steeper than the £2.8 billion deficit in 2004, Mr Rod Eddington said.
The warning follows a meeting this week of airline bosses at the International Air Transport Association (IATA) conference in Tokyo and comes after a turbulent year for the industry that has seen a number of carriers go to the wall.
"It's pretty much expected that airlines (will) lose more money this year than last year," Mr Eddington said.
Mr Eddington, who hands over to former Aer Lingus chief executive Mr Willie Walsh in September, believes BA's fuel bill will be £400 million higher this year.
High oil prices mean the company does not expect to reach its long-term goal of a 10 per cent operating margin this year. BA achieved an operating margin of 6.9 per cent last year.
Oil prices hit a new record above $55 a barrel in April and have forced airlines including BA to put a fuel surcharge on air fares.
The carrier hopes to achieve its 10 per cent target by making further changes to working practices and efficiency improvements, including the continued development of self-service check-in facilities.