According to the Guardian, the International Air Transport Association has warned that global airlines will plunge into combined losses of $8bn (£5.1bn) next year if the eurozone crisis turns into a full blown banking crisis and recession.

According to IATA the best possible outcome, based on the EU governments “muddling through” and resolving the eurozone crisis, would be for global airlines to generate total profits of $3.5bn next year.

Director General and chief executive of IATA, Tony Tyler, told the Guardian: "The only open question is how deep the losses will be."

IATA’s chief economist, Brian Pearce said that even though passenger numbers looked to be holding up surprisingly well in Europe, this was a “very fragile foundation” for future airline growth.

The struggling freight market is seen as a better indicator of what is ahead. Pearce continued: "While there isn't much sign that travellers are feeling the pinch, the situation is very different for the shippers." The biggest drop in the freight market is in Asia, down 15% over the last year, reflecting the fall of demand for Asia's manufactured goods in developed economies.

The Guardian continued saying that the airlines’ strong recovery since 2009 has faltered. Pearce said relatively high fuel costs – even with oil prices falling from their peak, they are 30% higher than this time last year – contribute to a squeeze on airline profits.

The air passenger duty increase confirmed on Tuesday by the Treasury would, he said, cost the UK economy £4bn and 80,000 jobs by 2015.