IATA: Slow improvement continues

The International Air Transport Association (IATA) reported international scheduled traffic results for October 2009 showing continued improving conditions, although yields remain under serious pressure.

Demand for both International cargo and passenger demand both rose to 0.5 per cent below October 2008 levels which is significantly better than the 5.4 per cent decline recorded in September. Load factors for cargo and passengers continue at pre-recession levels of 54.1 per cent and 78 per cent respectively, IATA said.

Cargo traffic is 14 per cent above the December 2008 low point, but remains 15 per cent below the early 2008 peak. Compared to September 2009, seasonally adjusted cargo volumes rose by 2.5 per cent. Carriers in all regions experienced improved demand conditions in October compared to September.

Carriers in the Asia-Pacific (with 44.3 per cent of the global cargo market share in terms of FTKs), saw demand grow 1.9 per cent compared to -3.1 per cent in September. The region’s carriers have benefited from the air freight generated by the earlier and stronger economic revival in the region, with industrial production now rising strongly in a number of economies, IATA said.

European carriers (with a 26 per cent share) saw the biggest weakness in demand with a fall of 11.3 per cent compared to October 2008, improving only slightly from the 13 per cent drop in September. The region’s carriers were also the most aggressive in adjusting capacity with a 12.4 per cent cut compared to previous year levels.

Middle Eastern carriers (10.1 per cent market share) saw demand growth of 18.4 per cent, an impressive improvement over the already healthy 3.6 per cent growth experienced in September and well above the region’s capacity growth of 11.2 per cent.

North American carriers (16.5 per cent market share) saw a 0.5 per cent growth in demand against a 12 per cent fall in capacity. Latin American carriers recorded a 6.7 per cent growth, significantly higher than the 1.8 per cent in September. African carriers saw demand decline 3.8 per cent, an improvement from the -6.9 per cent in September.