IATA Reports Continuing Declines in Passengers, Cargo

The International Air Transport Association (IATA) announced results for November showing a 4.6 percent drop in international passenger traffic and a 13.5 percent drop in international cargo. International capacity dropped by 1.0 percent. The November international passenger load factors stood at 72.7 percent –a decline of approximately 3 percentage points over the same month last year.

Asia-Pacific carriers face the most difficult operating environment with a 9.7 percent decline in November, following a 6.1 percent contraction in October. The region also had the most aggressive capacity cuts at 5.1 percent. While Chinese domestic traffic rebounded after the Olympics, travel to and from international markets continues to decline, reflecting the weakness in both global trade and consumer confidence.

North American carriers saw international traffic decline by 4.8 percent -- 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 percent drop in November, following 0.4 percent growth in October. European carriers saw international traffic drop by 3.4 percent as all the region’s major markets (intra-Europe, North Atlantic and Asia) slumped.

Smaller emerging markets fared better. African carriers saw traffic decline by 1.6 percent. This is a considerable improvement from the 12.9 percent drop in October, resulting from stronger intra-African traffic. Middle Eastern carriers saw traffic increase by 5.6 percent.

This is up from 3.5 percent growth in October, but represents a step-change from the double-digit expansion that characterized growth prior to the current financial crisis. Latin American carriers saw a slight decline in growth to 3.3 percent (compared to 4.5 percent growth in October), buoyed by the region’s positive, albeit slower, economic growth.