IATA Reports Continued Weakening in Air Passenger, Cargo Markets

By Kate Rice

The International Air Transport Association reported that global air passenger traffic continued to soften in November while cargo markets remained weak when compared to last year. Passenger traffic was 4.3 percent above November 2010 levels but this is skewed because November 2010 was a particularly weak month.

The softening in passenger markets becomes apparent when comparing November 2011 to October 2011. This shows a 0.5 percent decline on a seasonally adjusted basis. Freight markets were 3.1 percent below November 2010 levels despite a 1.1 percent increase on October 2011 performance.

Globally, passenger load factors have fallen sharply to 76.3 percent from 78.5 percent in October. This shows that the weakness in passenger demand is outpacing airlines’ ability to adjust capacity accordingly. Regional differences are sharp. While North American carriers saw a 0.8 percent decline in travel, carriers in the Middle East experienced a 10.1 percent increase, followed by 9 percent for Latin American airlines.