KUALA LUMPUR, MALAYSIA: The aviation industry has been projected to recover in two years' time.

International Civil Aviation Organisation council president Roberto Kobeh Gonzalez said that based on its studies, airline companies would face financial losses this year with a return to profitability next year and in 2010.

"Passenger growth will also recover by 2010," he said when addressing delegates at the 45th Asia-Pacific Region Conference of Civil Aviation Directors-General yesterday.

He said the volatility of oil prices and the economic downturn had caused structural changes to the industry,

"Companies are adjusting capacity, reducing their workforce and considering mergers. However, the industry is one that has always shown great resilience," he said.