IATA Works with Argentina to Strengthen Air Transport Sector
The International Air Transport Association (IATA) highlighted opportunities for greater cooperation to meet unprecedented challenges in Argentina’s air transport sector. “The global situation of the air transport sector is a disaster,” said Giovanni Bisignani, IATA’s Director General and CEO in a speech to JURCA, the association of airlines operating in Argentina.
“With industry revenues forecast to fall by 15 percent, the situation is far more severe than after September 11 when the shock to industry revenues was a 7 percent fall. Total industry revenues are expected to fall from $528 billion last year to $448 billion in 2009. The industry has never faced a bigger financial challenge,” said Bisignani.
IATA estimates that airlines lost $10.4 billion in 2008 and will lose a further $9 billion in 2009. Global passenger demand was down 7.2 percent in June, compared to the same month in 2008. In the same month, the number of premium travelers fell 21.3 percent compared to previous year levels.
Both of these represent slight improvements on May figures, which were down 9.3 percent for passenger demand and down 23.6 percent for premium travelers. Deep discounting to stimulate demand has amplified the impact of revenues which are falling by as much as 30 percent in international markets.
Bisignani noted that June cargo figures were down 16.5 percent, relatively stable with the decline of 17.4 percent recorded in May and a slight improvement on the performance for December 2008 to March 2009 when cargo demand losses hovered below 20 percent.
Bisignani also noted that Latin American carriers are outperforming the market with passenger demand down by 4.7 percent and cargo by 14.2 percent. The region is still being impacted by weakened confidence in travel as a result of H1N1 fears and heavy discounting is taking its toll on both revenues and profits for the region’s carriers.
In 2008, IATA worked with local authorities to improve the competitiveness of Argentina’s airports with a 30 percent discount on airline charges. ANAC, the regulator has also been changed to a civilian organization.
