IATA cuts 2006 airlines loss forecast to $1.7 bln

TOKYO, Aug 31 (Reuters) The International Air Transport Association (IATA) on Thursday trimmed its 2006 loss estimate for the global airline industry to .7 billion from billion, helped by cost-cutting efforts and higher revenues.

Director-General Giovanni Bisignani told Reuters in an interview that he saw no sign of slowing demand after police in London said they foiled a plot to blow up trans-Atlantic flights, but he said airports need to be better prepared for emergencies.

''I think security has improved a lot and passengers were kindly reassured that we have a secure environment,'' he said before a media briefing in Tokyo. ''But threats are there. This is a wake-up call to take greater attention.'' The Geneva-based IATA, representing 261 airlines comprising 94 percent of international scheduled air traffic, forecast a total fuel bill of 5 billion this year, up from its previous 2 billion projection, based on an average oil price of a barrel.

REUTERS CS RN1125