AlaskaDenise
In Memoriam
GENEVA (AFP) ? Airlines are on course for one of their toughest ever years, top industry association IATA warned on Thursday as the global slump pushes air cargo into free fall and slashes passenger growth.
"2009 is shaping up to be one of the toughest ever years for international aviation," International Air Transport Association Director General Giovanni Bisignani said.
"The 22.6 percent drop in international cargo traffic in December puts us in uncharted territory and the bottom is nowhere in sight. Keep your seatbelts fastened and prepare for a bumpy ride and a hard landing," he said.
Figures for 2008 released by IATA showed a 1.6 percent increase in passenger traffic, "dramatically down" from 7.4 percent growth the previous year.
In December alone, international air travel dropped 4.6 percent over the same month in 2007, propped up only by advance bookings for the holiday season, IATA said in a statement.
But air freight tumbled by an unprecedented 22.6 percent, as the overall decline that set in during the final months of last year accelerated.
Over the full year, international cargo traffic fell 4.0 percent, reversing previous growth, setting the stage for a further slide in air travel and freight.
IATA forecast a 3.0 percent decline in passenger volumes for 2009 and a further drop in cargo traffic of 5.0 percent.
The sharpest tumble last month was experienced in the airline industry's booming market in recent years, the Asia-Pacific region.
International passenger travel there slumped by 9.7 percent and Asian air cargo -- nearly half of the global total -- plunged 26 percent.
North American airlines experienced a 4.3 percent drop in demand for international flights in December, while European carriers experienced a slower decline of 2.7 percent.
Only the Middle East managed to cling on to slower growth.
But in all instances the dropping demand outstripped attempts by carriers to cut routes and schedules.
"Airlines are struggling to match capacity with fast falling demand," Bisignani cautioned.
"Until this comes into balance, even the sharp fall in fuel prices cannot save the industry from drowning in red ink."
After registering a collective loss of about five billion dollars in 2008, airlines are set to lose another 2.5 billion dollars in 2009, assuming oil prices average about 60 dollars a barrel, according to the association.
Analysts at Irish stockbrokers Davy Research said low cost carriers would continue to gain market share in Europe in the current situation. "Premium volume is likely to remain under pressure," they said in a market note.
IATA predicted that the economic crisis will cut 35 billion dollars from airline revenues this year, leaving them at a total of 501 billion dollars.
That prompted Bisignani to renew a call for governments to allow more cross border or global airline mergers: "We don't want bail-outs, but we need to change the ownership rules."
The slump in international air freight last month again exceeded the 13.9 percent monthly drop recorded after the September 11 attacks in 2001.
"The 22.6 percent free-fall in global cargo is unprecedented and shocking. There is no clearer description of the slowdown in world trade," he added.
About 35 percent of the trade in international goods trade is by air, according to IATA.
The association groups 230 carriers covering more than 90 percent of scheduled international air traffic, with the exception of exclusively low-cost airlines such as Ryanair and EasyJet.
http://www.google.com/hostednews/afp/article/ALeqM5i_gXt424DyR4BXYCeOtdiBmmCHQg
"2009 is shaping up to be one of the toughest ever years for international aviation," International Air Transport Association Director General Giovanni Bisignani said.
"The 22.6 percent drop in international cargo traffic in December puts us in uncharted territory and the bottom is nowhere in sight. Keep your seatbelts fastened and prepare for a bumpy ride and a hard landing," he said.
Figures for 2008 released by IATA showed a 1.6 percent increase in passenger traffic, "dramatically down" from 7.4 percent growth the previous year.
In December alone, international air travel dropped 4.6 percent over the same month in 2007, propped up only by advance bookings for the holiday season, IATA said in a statement.
But air freight tumbled by an unprecedented 22.6 percent, as the overall decline that set in during the final months of last year accelerated.
Over the full year, international cargo traffic fell 4.0 percent, reversing previous growth, setting the stage for a further slide in air travel and freight.
IATA forecast a 3.0 percent decline in passenger volumes for 2009 and a further drop in cargo traffic of 5.0 percent.
The sharpest tumble last month was experienced in the airline industry's booming market in recent years, the Asia-Pacific region.
International passenger travel there slumped by 9.7 percent and Asian air cargo -- nearly half of the global total -- plunged 26 percent.
North American airlines experienced a 4.3 percent drop in demand for international flights in December, while European carriers experienced a slower decline of 2.7 percent.
Only the Middle East managed to cling on to slower growth.
But in all instances the dropping demand outstripped attempts by carriers to cut routes and schedules.
"Airlines are struggling to match capacity with fast falling demand," Bisignani cautioned.
"Until this comes into balance, even the sharp fall in fuel prices cannot save the industry from drowning in red ink."
After registering a collective loss of about five billion dollars in 2008, airlines are set to lose another 2.5 billion dollars in 2009, assuming oil prices average about 60 dollars a barrel, according to the association.
Analysts at Irish stockbrokers Davy Research said low cost carriers would continue to gain market share in Europe in the current situation. "Premium volume is likely to remain under pressure," they said in a market note.
IATA predicted that the economic crisis will cut 35 billion dollars from airline revenues this year, leaving them at a total of 501 billion dollars.
That prompted Bisignani to renew a call for governments to allow more cross border or global airline mergers: "We don't want bail-outs, but we need to change the ownership rules."
The slump in international air freight last month again exceeded the 13.9 percent monthly drop recorded after the September 11 attacks in 2001.
"The 22.6 percent free-fall in global cargo is unprecedented and shocking. There is no clearer description of the slowdown in world trade," he added.
About 35 percent of the trade in international goods trade is by air, according to IATA.
The association groups 230 carriers covering more than 90 percent of scheduled international air traffic, with the exception of exclusively low-cost airlines such as Ryanair and EasyJet.
http://www.google.com/hostednews/afp/article/ALeqM5i_gXt424DyR4BXYCeOtdiBmmCHQg