MercoPress. South Atlantic News Agency

Global air traffic down; Latam pax up 4.5%, says IATA

The International Air Transport Association (IATA) announced international air traffic for October showing a second consecutive month of global decline. Latinamerica experienced 4.5% growth in passengers and a record drop in cargo, 11.4%.

International passenger traffic declined by 1.3% compared to the same month in the previous year - a smaller decline than the 2.9% drop experienced in September. The October load factor was 75%, approximately 2% below previous year levels. International air freight traffic contracted 7.9% in October for a fifth consecutive month. "The gloom continues and the situation of the industry remains critical. While the drop in oil prices is welcome relief, recession is now the biggest threat to airline profitability. The slight slowing in the decline of passenger traffic is likely only temporary. The deepening slump in cargo markets is a clear indication that the worst is yet to come," said Giovanni Bisignani, IATA's Director General and CEO. By region Asia-Pacific carriers, which represent 31% of global international passenger traffic, saw passenger traffic decline by 6.1% (slightly improved from the 6.8% decline in September). A capacity reduction of 2.3% could not keep pace with the drop in demand, taking load factors for the region's carriers to 72.2%. Year-to-date growth for Asia-Pacific carriers fell to 0.3%, the weakest growth outside of Africa. North American carriers saw international traffic decline by 0.8% in October compared to the previous year, only slightly changed from the 0.9% drop in September. European carriers saw traffic rebound slightly into positive territory with 1.8% growth in October. Latin American and Middle Eastern airlines recorded 4.5% and 3.5% growth respectively. While better than the September traffic figures, both regions remain well below the double-digit growth rates experienced over the first half of the year. African carriers saw the largest decline with international traffic dropping by 12.9% in October. It is the only region where traffic deteriorated relative to September. Regarding cargo the 7.9% decline in air freight during October has dragged year-to-date air freight volume to 0.8% below the same period in 2007. Forecasted declines in key air cargo sectors such as semi-conductors indicate that weakness is expected to continue. Asia-Pacific carriers, which account for 44.7% of the international cargo market, saw international freight traffic decline by 11.0%, reflecting the sharp drop in the region's exports. North American and European carriers saw less precipitous declines of 7.6% and 5.4% respectively. In sharp contrast to passenger performance, African carriers saw a 3.0% improvement in cargo during October. This reflects trade growth within Africa. Latin American carriers saw the largest decline (11.4%). Middle Eastern carriers were the only others to report growth (1.0%) in October. "As the global economic downturn re-shapes the world's financial industry, policy makers must also understand that change is needed in air transport. Unlike the finance industry, airlines are not asking for handouts. Commercial freedom, efficiency and a fair treatment in taxes are needed," said Bisignani.