ID :
22238
Wed, 10/01/2008 - 22:57
Auther :
Shortlink :
http://m.oananews.org//node/22238
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INT`L PASSENGER DEMAND GROWTH SLOWED DOWN IN AUGUST, SAYS IATA
KUALA LUMPUR, Oct 1 (Bernama) -- The International Air Transport
Association (IATA) says international passenger demand growth slowed to 1.3 per
cent in August following a disappointing 1.9 per cent growth in July.
Passenger load factors fell to 79.2 per cent, a sharp drop from the 81
per cent recorded during the same period last year, as capacity growth outpaced
demand, it said in a statement.
International freight traffic saw its third consecutive month of
contraction
with a 2.7 per cent decline following a drop of 1.9 per cent in July and 0.8 per
cent in June, it said.
"Passenger traffic grew by 5.4 per cent in the first half of the year. That
slowed to 1.9 per cent in July and 1.3 per cent in August. The contrast between
the first half of the year and the last two months is stark," said Giovanni
Bisignani, IATA Director-General and Chief Executive Officer.
He said the slowdown has been so sudden that airlines cannot adjust
capacity
quickly enough.
While the drop in the oil price is a welcome relief on the cost side, fuel
remains 30 per cent higher than a year ago, he said, adding that with traffic
growth continuing to decline, the industry is still heading for a US$5.2 billion
loss this year.
IATA said air freight has declined for the past three months led by Asia-
Pacific carriers that posted a 6.5 per cent decline in July and a 6.8 per cent
decline in August.
"Airlines carry 35 per cent by value of the goods traded internationally.
The three-month decline led by weakness in Asia-Pacific markets is a clear
indication that global trade is slowing down.
"This shows the impact of the financial crisis is broad geographically and
will worsen before it gets better," said Bisignani.
IATA said Asia-Pacific carriers reported a 3.1 per cent contraction
following a 0.5 per cent decline in July.
Economic distortions surrounding the Olympics in China and a weakening
Japanese economic outlook contributed to the decline, it said.
While some recovery in this weak performance is expected in coming months,
clearly the region's economies are feeling the impact of the turmoil in the
financial markets, it said.
It said Middle Eastern carriers saw traffic growth drop to 4.3 per cent
following 5.3 percent in July and well below the 10.6 per cent growth recorded
during the first six months of the year.
In contrast, international passenger traffic carried by North American
airlines accelerated from 4.2 per cent growth in July to 5.2 per cent in August,
in Latin America from 8.1 per cent to 11.9 per cent and in Europe from 1.3 per
cent to 1.6 per cent, it said.
It said August is usually the second strongest month of the year but the
79.2 per cent load factor achieved was 1.8 per cent points lower than last year
although scheduled capacity is planned to slow very sharply to the point where
it barely grows by year-end.
IATA said the 6.8 per cent decline in international freight shipped by
carriers in the Asia-Pacific region had the greatest impact as they comprise 45
per cent of the global air cargo markets.
The other big market players also showed weakness. European carriers
experienced 0.9 per cent decline while US carriers reported weak growth of 0.8
per cent, it said.
Sharp declines in freight traffic in Latin America (-13.2%) reflect
restructuring in Brazil with cuts in capacity, it said.
"The industry crisis is deepening and no region is immuned. Urgent measures
are needed. From taxation to charges and operational efficiencies, all areas
impacting the business must be examined for ways to reduce costs and drive
efficiencies. It's a matter of survival," said Bisignani.
He noted significant progress in Brazil where a Presidential approval for
the removal of fuel tax for international flights was published on Sept
26.
"After a two-year campaign, this is great news and the US$411 million
savings over the next four years could not be better timed.
"The challenge is for other governments to follow Brazil's example, conform
with global standards and free the industry of crazy taxation," he said.
This is particularly true of India as its carriers will post the largest
losses outside of the US - US$1.5 billion this year and they are being crippled
by enormous taxation on fuel, particularly in domestic markets, he
added.
Association (IATA) says international passenger demand growth slowed to 1.3 per
cent in August following a disappointing 1.9 per cent growth in July.
Passenger load factors fell to 79.2 per cent, a sharp drop from the 81
per cent recorded during the same period last year, as capacity growth outpaced
demand, it said in a statement.
International freight traffic saw its third consecutive month of
contraction
with a 2.7 per cent decline following a drop of 1.9 per cent in July and 0.8 per
cent in June, it said.
"Passenger traffic grew by 5.4 per cent in the first half of the year. That
slowed to 1.9 per cent in July and 1.3 per cent in August. The contrast between
the first half of the year and the last two months is stark," said Giovanni
Bisignani, IATA Director-General and Chief Executive Officer.
He said the slowdown has been so sudden that airlines cannot adjust
capacity
quickly enough.
While the drop in the oil price is a welcome relief on the cost side, fuel
remains 30 per cent higher than a year ago, he said, adding that with traffic
growth continuing to decline, the industry is still heading for a US$5.2 billion
loss this year.
IATA said air freight has declined for the past three months led by Asia-
Pacific carriers that posted a 6.5 per cent decline in July and a 6.8 per cent
decline in August.
"Airlines carry 35 per cent by value of the goods traded internationally.
The three-month decline led by weakness in Asia-Pacific markets is a clear
indication that global trade is slowing down.
"This shows the impact of the financial crisis is broad geographically and
will worsen before it gets better," said Bisignani.
IATA said Asia-Pacific carriers reported a 3.1 per cent contraction
following a 0.5 per cent decline in July.
Economic distortions surrounding the Olympics in China and a weakening
Japanese economic outlook contributed to the decline, it said.
While some recovery in this weak performance is expected in coming months,
clearly the region's economies are feeling the impact of the turmoil in the
financial markets, it said.
It said Middle Eastern carriers saw traffic growth drop to 4.3 per cent
following 5.3 percent in July and well below the 10.6 per cent growth recorded
during the first six months of the year.
In contrast, international passenger traffic carried by North American
airlines accelerated from 4.2 per cent growth in July to 5.2 per cent in August,
in Latin America from 8.1 per cent to 11.9 per cent and in Europe from 1.3 per
cent to 1.6 per cent, it said.
It said August is usually the second strongest month of the year but the
79.2 per cent load factor achieved was 1.8 per cent points lower than last year
although scheduled capacity is planned to slow very sharply to the point where
it barely grows by year-end.
IATA said the 6.8 per cent decline in international freight shipped by
carriers in the Asia-Pacific region had the greatest impact as they comprise 45
per cent of the global air cargo markets.
The other big market players also showed weakness. European carriers
experienced 0.9 per cent decline while US carriers reported weak growth of 0.8
per cent, it said.
Sharp declines in freight traffic in Latin America (-13.2%) reflect
restructuring in Brazil with cuts in capacity, it said.
"The industry crisis is deepening and no region is immuned. Urgent measures
are needed. From taxation to charges and operational efficiencies, all areas
impacting the business must be examined for ways to reduce costs and drive
efficiencies. It's a matter of survival," said Bisignani.
He noted significant progress in Brazil where a Presidential approval for
the removal of fuel tax for international flights was published on Sept
26.
"After a two-year campaign, this is great news and the US$411 million
savings over the next four years could not be better timed.
"The challenge is for other governments to follow Brazil's example, conform
with global standards and free the industry of crazy taxation," he said.
This is particularly true of India as its carriers will post the largest
losses outside of the US - US$1.5 billion this year and they are being crippled
by enormous taxation on fuel, particularly in domestic markets, he
added.
