Air Traffic Declining Faster than Capacity Cuts

The International Air Transport Association (IATA) has announced international traffic statistics for the month of February showing continuing deterioration in demand. Passenger volumes fell sharply to 10.1 percent below 2008 levels (from the decline of 5.6 percent recorded in January).

The 5.9 percent reduction in capacity –the most aggressive since the economic crisis began- could not keep pace with the fall in demand, pushing the February load factor down to 69.9 percent (3.2 percentage points below the same month in the previous year).

February international freight volumes were 22.1 percent below 2008 levels. This is the third consecutive month at more than 20 percent below previous year levels, following declines of 23.2 percent in January and 22.6 percent in December.

Latin American carriers most closely matched demand drops (down 3.8 percent) with capacity adjustment (down 2.4 percent). A slowdown in commodities is impacting trade, particularly with the U.S. and Asia. Latin American carriers experienced a demand drop of 22.8 percent driven by weakening demand for the region’s commodities.