November world air cargo down 13.5pc, passengers off 4.6pc

THE International Air Transport Association (IATA) figures show a year-on-year 13.5 per cent drop in world air cargo flow - the biggest decline since 2001 - as well as 4.6 per cent passenger traffic reduction with capacity falling only one per cent.

The 13.5 per cent drop in cargo is shocking, said IATA director general and CEO Giovanni Bisignani. As air cargo handles 35 per cent of the value of goods traded internationally, it shows the rapid fall in global trade and the impact of the economic slowdown.

Asia-Pacific carriers faced the most difficult operating environment with a 9.7 per cent decline in November, following a 6.1 per cent contraction in October, said the statement from IATA whose 240 airline members represent 94 per cent of international traffic.

Asia Pacific had the most aggressive capacity cut at - 5.1 per cent. Chinese domestic traffic rebounded after the Olympics, bug travel to and from international markets declined, reflecting the weakness in both global trade and consumer confidence, said Geneva-based IATA.

Smaller emerging markets fared better. African carriers saw traffic decline by 1.6 per cent. This is a considerable improvement from the 12.9 per cent drop in October, resulting from stronger intra-African traffic. Middle Eastern traffic increased 5.6 per cent, up from 3.5 per cent growth in October, but a change from the double-digit expansion that characterised growth before the financial crisis. Latin American carriers saw a slight decline in growth to 3.3 per cent (compared to 4.5 per cent growth in October), buoyed by the region's positive, albeit slower, economic growth, said IATA.

November international passenger load factors stood at 72.7 per cent, which is a decline of three per cent over the same month last year.

The industry is now shrinking. The one capacity cut in international passenger markets in November could not keep pace with the 4.6 per cent fall in passenger demand. We can expect deep losses in the fourth quarter, said Mr Bisignani.

North American carriers saw international traffic decline by 4.8 per cent - the second largest drop among the regions. Until August, the region's carriers had been shifting capacity to international markets. With the near collapse of the investment banking sector and consequent reductions in business travel, north Atlantic travel slumped. Carriers have started to cut international capacity with a 0.8 per cent drop in November (following 0.4 per cent growth in October).

European carriers saw international traffic drop by 3.4 per cent as all the region's major markets (intra-Europe, North Atlantic, and Asia) slumped.

Source: Schednet